Duties of an agent towards the principal.
by Danial Ikhwan
1. Section 165
1.1. An agent is bound to conduct the business of the agency with skill and to act with reasonable diligence and to use such skill as he possesses.
1.2. Agent must make sure that when he is acting on behalf of the principal, it is important for him to be careful.
1.3. Case= Keppel v Wheeler (1927)
2. Section 166
2.1. The agent is bound to render proper accounts to his principal on demand.
2.2. Case Lyell v Kennedy
3. Section 167
3.1. The duty of an agent, in cases of difficulty, to use all reasonable diligence in communicating with his principal and in seeking to obtain his instructions.
3.2. If he failed to communicate, the agent would be liable for breach of duty and must be responsible for any loss suffered by the principal.
4. Section 171
4.1. The agent is bound to pay to his principle all sums received on his account.
4.2. Agent must give the principal the money he received on behalf of the principal.
5. Section 174
5.1. The absence of any contract to the contrary, an agent is entitled to retain goods, paper, and other property, whether movable or immovable, of the principal received by him.
6. What is agent?
6.1. Agent is an entity who is employed or approved by the principal to work for him or to represent him in dealings with a third party.
6.2. Delegates non protest delegare and this is the general rule to duties of an agent towards the principle.
7. Section 164
7.1. An agent is bound to conduct the business of his principle according to the directions given by the principle.
7.2. Agent does not follow, it is a breach of agency contract.
7.3. Cases= Turnin v Bilton
8. Exceptions of general rule
8.1. 1- Where the principle approves or consents to the delegation of the authority.
8.2. 2- Where it is presumed from the conduct of the parties that the agent shall have power to delegate his authority.
8.3. 3- Where the custom, usage or practice of the trade or business permits delegation.
8.4. 4- Where the nature of the agency is such that delegation of the authority to another person is necessary to complete the business.
8.5. 5- If in case of necessity of an unforeseen emergency
8.6. Cases= De Bussche v ALT
