(a) State any four rights of an unpaid seller of goods
(b) Give six duties of an agent to the principal
Explanation
(a) The rights of an unpaid seller of goods include:
(I) Right to retain goods: The seller has a right to retain the tl possession of the goods if not paid for.
(ii) Right of stoppage in transit: The seller has the right to stop the goods going t2 to the buyer in order to regain and retain the possession of the goods until he is paid.
(iii) Right of resale: The seller t2 has the right to resell the goods especially perishables when he has notified the defaulting buyer who, despite the notice still failed to pay.
(iv) Legal action: The seller has the right to sue the buyer for the price of the goods if the buyer has '-1 taken possession of the goods.
(v) Recovery of possession from the buyer: An unpaid seller has the right to recover the goods already delivered to the buyer.
(vi) Issue of ultimatum: Unpaid seller has rights to give ultimatum to the I5 buyer compelling him to pay.
(b) The duties of an agent to the principal are
(i) He must obey or carry out all lawful instructions by the principal.
(ii) He has to exercise reasonable care, skill and diligence in performing his duties.
(iii) He must act in good faith and honesty by not engaging in any competing business to the detriment of the principal.
(iv) He must act personally, i.e., he must not delegate his duties as an agent to someone else.
(v) He must not misuse the confidential information in respect to the affairs of the principal.
(vi) He must render an account (i.e. stewardship) to the principal whenever required.
(vii) He must not take any secret gain beyond the authorised commission and any other remuneration.