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LAW OF AGENCY (*DUTIES OF AGENT (DUTIES OF PRINCIPAL (To respect any lien…
LAW OF AGENCY
*DUTIES OF AGENT
S. 164- To obey the principal's instructions in which failure to do so will result in brach of contract & the agent will be liable for any loss suffered by the principal. Case: Turpin v Bilton (1843)
S. 165- To exercise care and diligence in carrying out his work & to use such skill as he possesses.
Case: Chaudhry v Prabhakar (1989)
S. 166- An agent is under a duty to account for all monies & properly handled by him as agent for the principal & to produce such accounts when demanded by the principal.
S. 167- to communicate with his principal in cases of difficulty in obtaining instructions from the principal. In emergencies, the agent may use his own discretion in adopting a course of action to safeguard the interest of the principal.
S. 170- To retain out of any sums received on the account of the principal in the business of the agency, all monies due to himself in respect of advances made or expenses properly incurred by him in conducting such business.
S. 168- Not to make any secret profits out of the performance of his duty. If the principal knows & consents to it, the agent is entitled to keep the profit he makes.
S. 171- To pay his principal all sums received on his behalf. An agent may retain or deduct from such sums received, advances made or expenses incurred by him for acting as agent.
S. 169 the duty of an agent is to act solely for the benefit of the principal & he cannot allow his own personal interest to conflict with this duty. If applies the so-called 'self dealing' rule.
DUTIES OF PRINCIPAL
To respect any lien the agent has over the property of the principal in the actual or constructive possession of the agent
S. 175- To indemnify the agent for acts done in the exercise of his authority under the business of the agency
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S. 177- In a case where one person (the principal) employs another to do an act which is criminal or unlawful, the employer is not liable to the agent, wither upon an express or an implied promise.
To pay the agent the commission or other remuneration agreed, unless the agency relationship is gratuitous
CREATION OF AGENCY
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Watteau v Fenwick
USUAL AUTHORITY: created by the agent occupying a position which would normally carry with it authority to act of the kind in question.
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BY ESTOPPEL
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A representation made by or on behalf of the principal to the third party concerning the authority of the agent
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The third party must rely on the principal’s representation and alter his or her legal position on the strength of the representation
TYPES OF AGENT
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A BROKER
An agent who is engaged to make contracts between two principals (as counter parties) engaged in some aspect of trade, commerce and navigation
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POWERS OF ATTORNEY
Legal instruments under which principals (‘donors’) confer authority on agents (‘attorneys’ or ‘donees’) to perform certain acts for the principal.
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DEFINITION
‘the relationship that exists between two persons when one, called the agent, is considered in law to represent the other, called the principal, in such a way as to be able to affect the principal’s legal position in respect of strangers to the relationship by the making of contracts or the disposition of property’.
An Agent: person employed to do any act for another or to represent another dealings with third persons which also known as the principal
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