AGENT’S RIGHTS AND DUTIES
Agency as we know is a relationship that arises when an authorized persons (agent) expressly or impliedly act on behalf of another the principal in a way that affects the principals legal position. Agency can be created in writing or orally or simply by the way in which the parties behave themselves.
Duties of an Agent
The relationship between the principal and the agent, no matter how the relationship arose, is essentially one of trust (a fiduciary relationship).
? The agent’s duty is to follow any instructions of the principal
? Duty to act in person
? Carry out the task with care and skill
? Duty of good faith between the agent and the principal
? To render accounts to the principal
? To communicate with principal
? Not to deal with own personal account
? Not to make secret profits from agency
? Have the duty to pay the amount received for the principal
? Duty not to disclose any confidential information he/ she has obtained through being an agent
? There must be no delegation
Rights of the Agent
• Right to re-imbursement
• Right to indemnity
• Right to set-off
• Right to Lien
• Action for the agreed commission or remuneration
DUTIES AND RIGHTS OF THE PRINCIPAL
? The principal must pay remuneration to the agent
? To recover compensation for breach of duty by the agent
? Can forfeit agent’s payment of remuneration where he is guilty of his own conduct (misconduct).
? Have the rights to receive extra profit made by the particular agent
? Have the duty to enforce the various duties of the agent
? Have the rights to collect or receive all sums
The duties of the agent to the principal-
? To perform his duties in person, using ordinary skills and diligence. A delegate cannot delegate. (in other words, the agent must not take authority. E.g. To appoint a sub-agent.
? To obey the lawful instructions of the principal. If fails to act in the best interest of the principal he will be liable to the principal for any loss.
? To disclose to the principle all details of the agency, avoiding any conflict of interest with his principal.
? To maintain the confidentiality of any matters communicated to him as agent, not to disclose them to third parties or anyone else.
? To keep proper accounts of all transactions and render them to the principal on request.
? To avoid any secret profits from the transaction.