Duties and rights of an agent. Duties and rights of an complianceportal.american.edu 2022-11-16
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An agent is a person who represents another person or entity in dealings with third parties. In this capacity, an agent has certain duties and rights that they must fulfill and uphold in order to fulfill their role effectively.
One of the primary duties of an agent is to act in the best interests of their principal. This means that the agent must prioritize the wishes and goals of the principal over their own personal interests. They must also avoid conflicts of interest and disclose any potential conflicts to the principal.
Another duty of an agent is to exercise reasonable care and skill in carrying out their duties. This means that the agent must use their knowledge, expertise, and judgment to make informed decisions on behalf of the principal. They must also keep the principal informed of any important developments or decisions made on their behalf.
In addition to these general duties, an agent may also have specific responsibilities and obligations depending on the nature of their relationship with the principal and the type of work they are doing. For example, a real estate agent may have specific duties related to property listings, negotiations, and paperwork.
Along with their duties, agents also have certain rights. These may include the right to compensation for their work, the right to be indemnified against legal liability, and the right to terminate the agency relationship if the principal breaches their obligations.
In summary, the duties and rights of an agent depend on the specific nature of their relationship with the principal and the work they are doing. However, in general, an agent has the duty to act in the best interests of the principal and exercise reasonable care and skill, and the right to compensation, indemnification, and termination of the agency relationship under certain circumstances.
duties & rights of complianceportal.american.edu
A fiduciary relationship exists between the principal and the agent in a contract of agency. Besides names, address and occupation of partners, it lays down the duration of partnership, nature of business, profit sharing ratio, right to interest, salary, commission etc. Agency Section 182 of the Indian Contract Act defines the term Agent and principal, as per which, Agent is the person appointed by another person to represent in dealings or any kind of professional work with a third party. Customer service is a critical component of Agents assist existing clients manage their policies in addition to selling new ones.  Leiboak Syndicate v.
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. Duty to obey lawful directions of principal. The principal is bound by the acts of his agent and is thus, responsible for his acts to the third parties. Right of Lien Lien means a right to keep possession of property belonging to another person until a debt owed by that person is discharged. Duty of reasonable care and skill 212. Duty to Protect and Preserve the Interest Under 3. The Indian courts have held that even if amounts paid by the Agent were not legally required the Principal must reimburse him.
5 Rights and 9 Duties of an Agent in Contract of Agency
In addition, he is entitled or liable to compensate the principal for any such loss. As noted in Chapter thirteen Contracts , a private services contract cannot be delegated once the performance by the first contracting communicator is crucial to the particular performance of the duty. The person for whom such act is done, or who is so represented, is called the principal. Creation of agency According to Desai J as pronounced in Syed Abdul Khader v Rami Reddy,the relationship of agency has its genesis in a contract. The principal is the person who appoints the agent to represent him. The defendant told the plaintiff to search for another buyer for the other land.
What are the rights and duties of principal and agent?
What is the duty of a principal in a contract? The above right to indemnify does not apply to criminal acts of an agent even though they are authorised by the principal. Right to Indemnity Under In In a case, A, an agent, seized goods of T, a third party, at the command of P, the principal. Depending on the nature of the company, an agent has specific rights, obligations, and liabilities toward the principal and other parties. When he is an unpaid seller, he has a right to stop the goods in transit. So, the agent has the right to become the retainer of the goods or money of the principal which arises from his work as an agent. Causa proxima is not the question.
Rights, Duties and Responsibilities of an Agent to his Principal
Commission will be payable only on completion of the transaction. The above principle means a delegate cannot further delegate. The movable and the immovable property might include- goods, paper, house, etc. Indian courts held that an agent is entitled to indemnification even for transactions that are unlawful but not conducted illegally. DUTIES OF AN AGENT Rights and duties may be mutually be imposed on each other in the contract.
Such effects may only be granted if the persons infringing have the specific circumstances predicted or expressly known to them. It does not grant the right to retain all goods. The duties of a principal are the rights of the agent. Â But when the instructions are absent, business customs should be followed by the agent. In general the agent is expected to work in the manner as he would do in his own name.
The provision provides that an agent ought to render proper accounts to his principal on demand. His rights cannot go beyond those of the main agent and they have to exercised through the agent except where direct action would be necessary to give business efficacy to the appointment of a sub-agent. In Heyman v Darwins Ltd a key factor was brought to light i. In case of a substituted agent a direct privitive contract is established between him and the principal. Thus, the agent needs to act in such a way that it leads to the greatest advantage of the principal. A principal incorporates a right to sue his agent for damages just in case of breach of duty by the agent.
Agent duty to avoid conflict between his duty and the interest of the principal. Â Duty to maintain accounts The duty to maintain accounts has been provided under Section 213 of the Indian Contract Act. But the principal can do the act himself or release the agent from doing the act appointed to him. The principal is the person who appoints the agent to represent him. It is only void. A captive agent is not confined to their office; rather, they sell products on behalf of a single insurance provider similar to Square One's licensed agents. Agency by holding out c.
