(a) Who is an agent?
(b) Give six duties of an agent.
(c) State three rights of an agent.
Explanation
(a) An agent; is a person who effects a contract between his principal and a third party. The agent may be an employee of his principal, e.g. salesman in a shop or he may be an independent contractor. He has power to make a binding contract between the principal and third parties without himself becoming a party to the contract.
(b) Duties of an agent are:
(i) The agent must keep proper book of accounts of all transactions connected with the agency and render them to the principal on request.
(ii) He must not delegate the performance of his duties.
(iii) He must not misuse confidential information regarding his principal's affairs.
(iv) He must not make secret profit or accept bribes in respect of the agency.
(v) He must not compete or let his interest conflict with that of his principal.
(vi) He must exercise due care and skill in the performance of his duty.
(vii) The agent must carry out the principal's lawful instructions.
(c) Rights of an agent are:
(i) The agent has right to his remuneration.
(ii) He has right to be indemnified against loss arising in the performance of his duty.
(iii) He has right to be paid any expense incurred in the course of the business.