As far as the duty of an agent to his principal is concerned, the agent is obliged to do the following for the principal:
1. Obey the principal's instructions
2. Act according to the customs prevail if there is no instruction from the principal
3. Exercise care and diligence in carrying out his work and to use skill as he possesses
4. Render proper accounts when required
5. Pay the principal all sums received on his behalf
6. Communicate with the principal
7. Avoid conflict of interest with own duty
8. Not to make any secret profit out of the performance of his duty.
9. Not to disclose confidential information or documents entrusted to him by his principal
10. Not to delegate his authority
However, to this rule there are exceptions. Thus, an agent may delegate his authority or appoint a sub agent under the following circumstances:
(a) Where the principal approves of the delegation of authority.
(b) Where it is presumed from the conduct of the parties that the agent shall have power to delegate his authority.
(c) Where the customs of the trade or business permits delegation.
(d) Where the nature of the agency is such that delegation of the authority to another person is necessary to complete the business.
(e) In cases of necessity or unforeseen emergency (for instance, due to sickness of agent).
(f) Where the act to be done is purely
No comments:
Post a Comment