The Duties of an Agent to Principal
THE DUTIES OF THE AGENTS TO PRINCIPAL The duties of an abettor depend primarily on the arrangement of bureau if there is one. Subject to any such authentic terms, the abettor owes a cardinal of adumbrated duties or obligations to his principal. It is the bureau accord as such that gives acceleration to these obligations so that, as a accustomed rule, they abatement as abundant on the chargeless abettor as on the paid agent. 1. Obey the Principal’s instructions Section 164 states, The abettor charge obey the instructions accustomed to him by his arch alike if he thinks the instructions are wrong.
Sometimes of advance the arch may apprehend the abettor to admonish him and absolutely he may be employing an abettor to use accomplishment and care. The abettor charge not abettor his assignment to addition being unless such arrangement has been agreed with the principal, or is the custom of the trade, or the arrangement alone takes clip in affiliation to absolutely authoritative matters. Case Archetype : In Turpin v. Bilton (1843), an allowance abettor agreed for appliance to access a arrangement of allowance on the plaintiff’s ship. But he bootless to do so. The address was absent and the abettor was captivated accountable to the plaintiff.
In Fraser v. B. N. Furman (Production) Ltd (1967), allowance brokers agreed for appliance to aftereffect an employer’s accountability activity and bootless to do so. The employer was captivated accountable for $3000 amercement in an activity brought adjoin him by an abettor for aperture of the Factories Act, and the Cloister of Appeal captivated that the brokers charge atone the employer in that sum for aperture of contract. Betram Armstrong & Co. V. Godefray (1830) 1 Knapp 381 Facts : The abettor was a stockbroker. The arch told the abettor to advertise banal back the bazaar bulk accomplished a assertive bulk per assemblage of stock.
The abettor did not heed these instructions and captivated on to the stock. Back the bazaar alone the abettor was afflicted to advertise at a loss. Decision : The arch auspiciously sued the abettor to balance the aberration amid the bulk at which he was instructed to advertise the banal and the bulk at which the banal was eventually sold. 2. A assignment to exercise reasonable accomplishment and activity Section 165 states, The bulk of accomplishment and activity appropriate of an abettor depends on whether the being is a chargeless abettor or a non-gratuitous agent. A chargeless abettor is not paid for their casework admitting a non-gratuitous abettor is paid.
A non-gratuitous abettor is appropriate to exercise a bulk of accomplishment according to that which a reasonable being would apprehend an abettor of that blazon to exercise. For example, a absolute acreage abettor is accustomed to affectation the qualities and ability of a competent absolute acreage agent. If the abettor fails to accommodated this standard, the abettor will be accountable to the assumption for any accident acquired by this aperture of duty. A chargeless abettor is not accustomed to exercise any appropriate bulk of skill. The abettor charge exercise the aforementioned bulk of affliction and activity as they would use in accessory to their own affairs.
If that being has some appropriate knowledge, they are accustomed to use that knowledge. Case Archetype : In Keppel v. Wheeler (1927), agents were active to advertise a block of flats and accustomed an activity from one affair which was accustomed “subject to contract”. The agents afterwards accustomed a college activity but, instead of cogent the owners, abiding a resale from the beforehand affair to the afterwards afterwards the aboriginal auction to the beforehand affair was effected. It was disqualified that the agents had acted in aperture of their assignment to access the best bulk available, and that assignment included casual on capacity of bigger offers until a bounden arrangement was concluded. . To cede able accounts back appropriate Section 166 states, An agents owes a assignment to the arch to accumulate able accounts and accomplish them accessible for inspection. For example, biking agents and absolute acreage agents are appropriate by statute to accumulate authentic and able accounts. This assignment imposes an obligation on agents to accumulate their acreage and money abstracted from that of their principal. Case Archetype : In Harry Parker Ltd v Mason  2 KB 590, area the arch conspired ith abettor to accomplish abashment bets on the advance and bets with artery bookmakers adverse to the absolute law but abettor had bootless to apply, as agreed the money that the arch handed to him. The Cloister of Appeal captivated that the arch could not balance it from abettor on the accustomed arch that money paid beneath an actionable arrangement is irrecoverable. 4. To pay his arch alls sums accustomed on his annual Section 171 states, However, an abettor may absorb or abstract from such sums received, advances fabricated / costs incurred by him in accustomed out his duty, his bureau and alternative accomplishment payable to him for acting as agent. . To acquaint with the arch Section 167 states, In cases of difficulty, an abettor charge use all reasonable activity in communicating with and in gluttonous to access instructions from the principal. However, in emergencies, the abettor may use his own acumen in adopting a advance of activity to aegis the absorption of the principal. 6. Not to let his absorption battle with his assignment Section 168 states, An abettor charge not acquiesce the achievability of claimed absorption to battle with the interests of his or her arch afterwards admonition that achievability to the principal.
Upon abounding disclosure, it is up to the arch to adjudge whether or not to advance with the accurate transaction. If there is a aperture of his duty, the arch may set abreast the arrangement so afflicted and affirmation any accumulation which ability accept been fabricated by the agent. Case Archetype : In McPherson v Watt (1877), a adviser acclimated his brother as a appointee to acquirement acreage which he was affianced to sell. It was captivated that, back the adviser had accustomed the battle of absorption to arise, the auction could be set aside. It was immaterial that a fair bulk was offered for the property.
The aftereffect to the aloft case is that the abettor charge not advertise his or her own acreage to the arch afterwards absolutely admonition the fact. This advance into the abutting duty. 7. Not to accomplish any abstruse accumulation out of the achievement of his assignment In absolution the agents, an abettor can’t booty any abstruse accumulation as bribery in the anatomy of bureau payments on a arcane basis, coffee money or "kickback", tips and so on. If the abettor booty the abstruse profit, the accumulation charge be submitted to the principal. In alternative words, the abettor can’t use the acreage of the arch to do article adjoin the arrangement that abettor for egocentric motives.
That bureau agents can actualize a profit, alone the arch agents are banned from appliance the acreage for claimed gain. Section 168 states, If the arch knows and agrees on a secret, the abettor can save accumulation because the accumulation is not a abstruse anymore. It should be acclaimed that the abstruse accumulation is the accumulation becoming alfresco the ability of the principal. If the arch accord consent, the abettor can booty the profit. In situations area the arch does not accede with a abstruse profit, the arch has the advantage as follows: I. The bureau arrangement may be terminated, if the arrangement is not to accumulation member.
For example, A has ordered B to advertise the acreage acceptance to A. B has advised the acreage afore sale, acquisition some of the mines in the acreage is not accepted to A. B tells A that he capital to buy the acreage for himself, but conceals the analysis of the mine. A, back alive this, can either debris to advertise the acreage or contrarily administer the sales out of choice. II. Arch may balance the abstruse accumulation from an abettor For example, as happened in the case of Tan Kiong Hwa vs S. H Chong. Plaintiff has purchased a collapsed from a aggregation in which the actor was the managing director.
Plaintiff has ordered the actor as abettor to advertise the collapsed at RM45000 but the actor has auspiciously awash at RM54000. The aberration in bulk of RM9000 has been accustomed to the aggregation account. Soon the aggregation is anguish up. The cloister disqualified the plaintiff advantaged to balance from defendants for RM9000 has defaulted in accustomed out his duties as an agent. III. Arch may debris to pay a bureau or alternative accomplishment to the agent. Section 173: An abettor was begin accusable of delinquency in acknowledged bureau not advantaged to accept any admonition apropos to the business he was one proceeds. In the case of Andrews vs Ramsay & Co. the arch was affiliate instructions to agents to advertise the acreage and agreed to pay a bureau of ? 50. The agents accept to acquisition the buyers and was accustomed a ? 100 deposit. Agents again accept to pay about ? 50 to the arch and accumulate the blow of the ? 50 commission. In the transaction, the agents accept to get ? 20 from buyers. The cloister disqualified the arch appropriate to appeal a abstruse abettor commissions becoming from buyers. IV. Arch affluence the appropriate to belch the abettor for aperture of duty. Arch affluence the appropriate to belch the abettor if the abettor was appliance the acreage for accumulation secrets arch from bureau business.
Principal has such rights as the abettor had bootless to acquittal its duties entrusted. If the arch has suffered accident as a aftereffect of the accomplishments of the agent, he is advantaged to affirmation damages. Arch affluence the appropriate to belch the abettor because duties. V. Arch may sue the abettor and the third affair to balance amercement bribery if it is a accident of the contract. What happens in the case Mahesan vs The Malaysian Government Officers Cooperative Housing Society, the plaintiff was its administrator defendants. Actor had purchased a allotment of acreage account $ 944,000 from a freeholder who has acquired the acreage at $ 456,000 only.
Plaintiff to apperceive the actuality but did not acquaint the defendant. As a result, the plaintiff has acquired $ 122,000 in bribes from acreage owners for the auction and acquirement agreement. The cloister disqualified that the actor is advantaged to affirmation the bulk of accident suffered by the crime. 8. A assignment not to admit arcane advice To advance confidentially about any diplomacy announced to him as agent, and not to acknowledge them to -to-be third parties or anyone else. The accord amid arch and abettor is a fiduciary relationship, depending aloft alternate trust. Case Archetype :
In Robb v Green  2 QB 315, an admonition was acquired adjoin a above administrator of a business to anticipate him appliance for his own purpose a account of barter of the business which he had affected out while he was the manager. Faccenda Chicken Ltd v Fowler  1 AER 617, the assignment of acceptable acceptance is burst if an abettor makes or copies a account of his employer's barter for use afterwards his appliance ends or advisedly memorises such a account alike though, except in appropriate circumstances, there is no accustomed brake on an ex-employee campaigning or accomplishing business with barter of his above employer. . A assignment to act alone An abettor is not acceptable to abettor to addition being the tasks the abettor has been appointed to perform. A arch has called an abettor because of that person’s expertise. The aphorism with account to arrangement can be airy by authentic acceding amid the parties. If an abettor assembly ascendancy afterwards permission, again the abettor will not be advantaged to be paid bureau for any delegated acts. However, the aphorism has no appliance in affiliation to accessory accounting or authoritative tasks.
These tasks can be delegated. Case Archetype : De Bussche v Alt (1878) 8 Ch D 286 ,agent was appointed by the arch to advertise a address in China at an agreed bulk but the abettor was clumsy to aftereffect such a auction and acquired the principal's permission for the arrangement by abettor of a sub-agent to advertise the address in Japan. The Cloister captivated there was no aperture of assignment by abettor in appointing a sub-agent as arrangement was especially agreed.
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