Compensation and Indemnification The principal's first duty to the agent is compensation. He received as offer which he promptly communicated to his principal. On such contracts, he can sue and be sued in his own name because in the eyes of law he is the real contracting party. The agent was under instruction to insure them. This viewpoint was one of the opinions explicitly put… 1856 Words 8 Pages November 2015 Concepts Paper The reoccurring concept of the principal-agent problem can be defined as employees taking advantage of their employers, or in political terms, elected officials taking advantage of their constituents by hiding information and specialization. Hence, the agent is obliged to return to his principal all documents and property originally given to the agent by the principal and documents prepared by the agent on the instruction and at the expense of the principal. A must make good to B the interest usually obtained by such investments.
A banker instructed to make payment toa particular person at the particular place may appoint a banker who has an office at that place. If the estate agent makes use of this information, which he is appointed to obtain on behalf of the purchaser, and acquires that property himself without disclosing the same to the purchaser and makes a profit by reselling it, the estate agent will, among other things, be in breach of his fiduciary duty not to make secret profit. The salesman's company is to receive 50% of a 7% commission, what is the salesman's share of the commission if he received 45% of the amount his company receives? He is in such a case entitled to repudiate the whole transaction. So agent can make principal answerable for all types of sufferings. If an agent signs on the bill of exchange without telling that he is signing on the behalf of the principal. But, if due to certain reasons he is unable to communicate the difficulty, he has full authority to take all reasonable steps to prevent loss. Other Duties In addition to fiduciary responsibility and whatever special duties may be contained in the specific contract the law of agency imposes other duties on an agent.
According to the extent of authority there may be general, special, universal agent. Accordingly, an estate agent who acts for both the vendor and purchaser in a sale and purchase property transaction must disclose the fact to both the vendor and the purchaser and obtain their consent for so acting. An agent is bound to conduct the business of his principal, according to the directions given by the principal. Principal Agent Relationship in Contract - YouTube 19 Duties and rights of principal - YouTube Principal Liable for Torts of an Agent - YouTube What Is A Principal And Agent? But he is not so liable for indirect or remote losses. Where an agent has an express or implied authority he may name another person as substitute agent to act for his principal. Anonymous Such a vetust law that has been abrogated by so many common laws. Agents must, of necessity, be allowed some degree of discretion in the conduct of routine transactions.
A case in point is Keppel v Wheeler 1927 , the defendant, Wheeler was employed by the plaintiff, Keppel to sell his house. It is only when he acts as a representative of the other in business negotiations,that is to say,in the creation,modification or termination of contractual obligations,between that other and third persons,that he is an agent. No conflict of interest a. Thus, the knowledge of the agent is the knowledge of the principal. If the agent has agreed to accept the liability of the third party.
The agent owes the principal a fiduciary duty. Example: A authorized B, an agent to buy 500 sheeps. Where the agency agreement does not expressly provide for payment of remuneration to the agent, and there is a dispute between the principal and agent as to the right to claim any remuneration and the amount and terms of payment of such remuneration, the court may have to determine if, on the facts of the case, there are any implied terms in respect of the same in the agency agreement. This duty supplements the duties created by an agency contract. To conduct principal's business according to his directions Sec.
Failure to warn an agent that travel in a particular neighborhood required by the job may be dangerous a fact unknown to the agent but known to the principal could under common law subject the principal to a suit for damages if the agent is injured while in the neighborhood performing her job. Various case laws has been dealt to explain these matters. After that, the plaintiff wrote to the defendants that they should sell the defaulted scrip as and when they thought it is the best time to do so. This trade-off was felt to be equitable to employer and employee: the employee loses the right to seek damages for pain and suffering—which can be a sizable portion of any jury award—but in return he can avoid the time-consuming and uncertain judicial process and assure himself that his medical costs and a portion of his salary will be paid—and paid promptly. If negligence is proved, the agent is liable for any loss incurred by the principal.
Where the agent represents the seller, his core duty is to help the seller arrive at an appropriate and realistic price, discovering and disclosing facts that affect the seller and properly presenting the contracts that the seller signs. When an agent is appointed to facilitate or negotiate a transaction on behalf of the principal, the agent owes a duty to the principal to act in the principal's best interests within the authority of the agent. Further, the agent must act with reasonable diligence and to the best of his skill. The right of lien may also be exercised by an agent in respect of products produced or documents prepared by the agent on the instruction of the principal. Hence, N must make good the loss to his or her principal, M. Confidential information entrusted to an agent includes any information which is not readily available to the public. When the agent receives money by mistake or fraud.
For example, an agent appointed to purchase goods for his principal from a supplier obtains secret monetary benefit from the supplier for placing purchase orders with the supplier. Use of Skill and Knowledge :- It is the duty of the agent that he should perform his duties with as much skill and knowledge as is generally shown by an ordinary prudence in similar business. He may repudiate the contract if any material fact has been dishonestly concealed from him by the agent, or if the dealing of the agent has been disadvantageous to him. Another example is Bostock v Jardine 1865 , where the agent was liable when he bought more than he was directed to buy. Agents working for the sellers should not reveal any other price or suggest a suitable initial offering price unless the seller has given those instructions. This resulted in final acceptance of the first offer in ignorance of the second.
The reason for this is that the contract for the works is concluded between the employer and the contractor. When the agent acts otherwise, if any loss be sustained, he must make it good to the principal, and if any profit accrues, he must account for it. A, on discovering that B has bought the estate for himself, may repudiate the sale, if he can show that B has dishonestly concealed any material fact, or if the sale has been disadvantageous to him. Obedience to instructions The agent has a duty to follow any special instruction of the principal. In return, the Principal must make a full disclosure of all information relevant to the transactions that the Agent is authorized to negotiate and pay the Agent either the or fee as agreed, or a reasonable fee if none were previously agreed on.
Courts are apt to be liberal in construing statutes to include those who might not seem to be employed. For example, an agent appointed to purchase goods for his principal from a supplier obtains secret monetary benefit from the supplier for placing purchase orders with the supplier. The school board argued that he could not be classified as an employee because he received no pay. Definition Answer : C Term 2 An owner's agent is showing a buyer an apartment building. Agent is authorized to create a contract between his principal and third party. A written contract of sale between the plaintiff and the first offeree was duly signed. The laws specify conditions under which companies may resort to self-insurance, and generally only the largest corporations qualify to do so.