- act on behalf of and be subject to the control of the principal;
- act within the scope of authority or power delegated by the principal;
- discharge his/her duties with appropriate care and diligence; and.
What is the duty of agent?
The said duty is specified in Section 211 of the Indian Contract Act, 1872. The agent must perform or regulate the activities according to the instructions or directions of the principal only . The agent is bound to conduct the business in such a way that it does not go beyond the authority of the principal.
What are the duties of principal and agent?
(1)He can enforce the various duties of an agent. (2) He can recover compensation for any breach of duty by the agent . (3) He can forfeit agent’s remuneration where the agent is guilty of misconduct in the business of agency. (4) Principal is entitled to any extra profit that the agent has made out of his agency.
What duties do agents and principals owe each other?
The agent owes the principal two categories of duties: fiduciary and general . The fiduciary duty is the duty to act always in the interest of the principal; the duty here includes that to avoid self-dealing and to preserve confidential information.
What are the 5 duties of an agent?
- Duties to follow Instructions or Customs:
- Duty of reasonable care and skill.
- DUTY TO AVOID CONFLICT OF INTEREST.
- Duty not to make secret profit:
- Duty to remit sums.
- Duty to maintain Accounts:
- Duty not to delegate.
What are the types of agent?
- Artists’ agents. An artist’s agent handles the business side of an artist’s life. ...
- Sales agents. ...
- Distributors. ...
- Licensing agents.
Who can be an agent?
According to Section 183, any person who has attained the age of majority and has a sound mind can appoint an agent. In other words, any person capable of contracting can legally appoint an agent. Minors and persons of unsound mind cannot appoint an agent.
What are the rights duties and liabilities of insurance agent?
- Obey the Instruction: It is the basic duty of an agent that he should act upon the lawful instructions of the principal.
- Conducting Business: ...
- Showing of Accounts: ...
- Return of Undue Profit: ...
- Use of Skill and Knowledge: ...
- Communication With Principal: ...
- Payment of All Sum: ...
- Principal Death Case:
What is Del Credere agent?
A del credere agency is a type of principal-agent relationship wherein the agent acts not only as a salesperson, or broker, for the principal, but also as a guarantor of credit extended to the buyer. ... A del credere agent is a combination of a salesperson and an insurance firm .
How agency can be terminated?
Section 201 Termination of agency: An agency is terminated by the principal revoking his authority , or by the agent renouncing the business of the agency; or by the business of the agency being completed; or by either the principal or agent dying or becoming of unsound mind; or by the principal being adjudicated an ...
What are the five key responsibilities of a principal?
Principals develop standardized curricula, assess teaching methods, monitor student achievement, encourage parent involvement, revise policies and procedures , administer the budget, hire and evaluate staff and oversee facilities.
What are duties of principal?
The role of the Principal is to provide leadership, direction and co-ordination within the school . The Principal’s main focus should be to develop and maintain effective educational programs within his/her school and to promote the improvement of teaching and learning with his/her school.
What is an example of a principal agent problem?
Principal Agent Problem Examples
A widespread real-life example of the principal agent problem is the way companies are owned and operated . The owners (principal) of a firm will elect a board of directors. The board of directors monitor and guide the management team like C-Level executives (the agents).
Who is responsible for the action of an agent?
Principal is responsible for the actions of an agent. It is important for an agent to know their role.
Can agent sue on behalf of principal?
Agent acting within authority
A contract is formed directly between the principal and the third party, and both the principal and the third party may sue and be sued on it . The agent is not party to the contract, and may not sue or be sued on it, unless contrary intention appears.
What is estoppel agent?
Agency by Estoppel: If a principal (NOT THE AGENT) holds out to a third party that another is authorized to act on the principal’s behalf , and the third party deals with the other person accordingly, the principal may not later deny that the other was the principal’s agent for purposes of dealing with that third party.
