Rights duties and relationship of principal and agent pdf
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- Principal-Agent Relationship
- The Definition of Principal Vs. Agent
- Rights and duties of principal towards his agent
The agent owes the principal duties in two categories: the fiduciary duty and a set of general duties imposed by agency law. But these general duties are not unique to agency law; they are duties owed by any employee to the employer. There is no relationship beyond the agreement. This literalist approach is justified by the more general principle that we each should be free to act unless we commit ourselves to a particular course. Agency imposes a higher duty than simply to abide by the contract terms.
Types of an Agent:. Commission Agent. Deceredere Agent. Rights of an Agent:. Following are the important rights of an agent : 1.
The Definition of Principal Vs. Agent
We have discussed about rights and duties of agent towards his principal. It must be noted that principal is liable only for such damages as are direct and immediate and naturally follow the execution of the agency. Misrepresentations or fraud by agent sec : Misrepresentations made, or frauds committed, by an agent acting in the courses of business for his principal, has the same effect on agreement made by such agent as if such misrepresentations or fraud had been made or committed by the principal. To repudiate contract Sec : If an agent deals on his own account in the business of the agency, without first obtaining the consent of his principal and acquainting him with all material circumstances which have come to his own knowledge on the subject, the principal may repudiate the transaction, if the case shows either that any material fact has been dishonestly concealed from him by the agent or that the dealings of the agent have been disadvantageous to him. To claim benefit Sec : if an agent without the knowledge of the principal, deals in the business of the agency on his own account instead of on account of his principal, the principal is entitled to claim from the agent any benefit which may have resulted to him from the transaction.
rights, duties, powers and liabilities of the parties inter se.' As to the character of the relation, it has been variously described as a special kind of contract,2 a.
Rights and duties of principal towards his agent
After reading this chapter, you should understand the following:. An agent is a person who acts in the name of and on behalf of another, having been given and assumed some degree of authority to do so. Most organized human activity—and virtually all commercial activity—is carried on through agency. No corporation would be possible, even in theory, without such a concept.