Rights and Duties of Agent

Only available on StudyMode
  • Download(s) : 278
  • Published : December 25, 2012
Open Document
Text Preview
 RIGHTS OF AGENT:
Following are the rights of agent.

(I) RIGHT OF REMMUNERATION:
It is basic right of an agent.

(II) RIGHT OF COMMISSION:
He has also right of commission.

(III) RIGHT OF LINE:
An agent has right of line over goods until the payment in due is received by him.

(IV) RIGHT TO RETAIN:
An agent has right to retain goods, papers and other property until the amount due is paid.

(V) RIGHT OF COMPENSATION:
In case of injury caused to agent by the negligence of principal may be compensated by him.

(VI) RIGHT TO BE INDEMNEFIED:
An agent has a right to be indemnified against liabilities falls on him.

(VII) RIGHT TO BE INDEMNIFIED AGIANST CONSEQUENCES OF ACTS DONE IN GOOD FAITH:
He has right to indemnified against the consequences of act done in good faith even though it causes an injury to the rights of third person.

(VIII) RIGHT OF STOPAGE OF GOODS IN 
TRANSIT:
He has right of stoppage of goods in transit.

DUTIES OF AN AGENT:
Following are the duties of an agent.

(I) OBEY THE INSTRUCTIONS:
He should obey the instructions of the principal. 

(II) CONDUCTING BUSINESS:
It is the duty of agent to conduct the business of principal.

(III) SHOWING OF ACCOUTNS:
He should maintain the accounts and show to principal on his demand.

(IV) RETURN OF UNDUE PROFIT:
If an agent has earned undue profit from the business he should return it to principal.

(V) USE OF SKILL AND KNOWLEDGE:
Agent should perform his duties as much skill and knowledge as is generally shown by ordinary prudence in similar business.

(VI) PAYMENT OF ALL SUMS:
He should pay all sums to his principal received on his account.

(VII) SEPARATE ACCOUNTS:
He should not mix his account with the principal and maintain separate accounts.

(VIII) DUTY IN CASE PRINCIPAL DIE OR
BECOME INSANE:
He should protect the interest of legal heirs.

(IX) NOT TO DELEGATE AUTHORITY:
He should not delegate his authority to any other.

(X) DUTY TO...
tracking img