Rights and duties of agent
B is bound to make good to A the profit which he might have made by the bales of cotton at the time of ship arrived, but not any profit he might have made by the subsequent rise. Also, an agent has an authority to do anything that prevents the principal from any loss or damages.
If the third party debtor does not make payment or becomes insolvent, the Del-Credere Agent has to make payment to his principal. C, before payment, becomes insolvent.
Where it is the custom or usage of trade to delegate. The agent must not use his position for his personal benefit to the detriment of his principal, and he must not become a principal as against his employer. In consequence of the omission of the clauses nothing can be recovered from the underwriters.
When the agent acts otherwise, if any loss be sustained, he must make it good to his principal, and, if any profit accrues, he must account for it.
Rights of agent in contract
When the agent acts otherwise, if any loss be sustained, he must make it good to his principal, and, if any profit accrues, he must account for it. The agent's action and services must not have been merely incidental. Right of Indemnity: Principle of indemnity gets operated between principal and agent where principal is implied indemnifier and agent is implied indemnity holder. B, having it in his power to send the cotton, omits to do so. Where the principal finds that the agent is making secret profits , he may dismiss the agent without notice, recover the amount of profit and also refuse to pay him his remuneration. B is liable for the money and interest, from the day on which it ought to have been paid, according to the usual rate, and for any further direct loss - as, e. Right of lien: Agent can exercise right of lien but contract act has not specified whether it is general lien or particular lien. And if the event specified does not occur, the agent will not be entitled to claim any remuneration even if he has spent time and effort in trying to bring about the event. So an agent is a person who is employed by the principal in order to represent him in business dealings with third parties. An Agent, without the knowledge of his principal, should not deal in the business of agency on his own to make secret profit. Liabilities of Agents.
As per sections andan agent has a right to be indemnified by his principal for all chargesexpenses, and liabilities that he incurs during the course of the agency.
Performance With Honesty: It is the duty of an agent that he should deal the business honestly.
Duties and rights of principal ppt
When the agents sign the contract in his own name without disclosing that he is signing on behalf of his principal. Those situations are as follows; Terms of contract of agency may create personal liability to agent. A is bound to make good the loss to B. He should seek instructions from his principal. When he is an unpaid seller , he has a right to stop the goods in transit. Where it is the custom or usage of trade to delegate. Share this. Right to claim Remuneration: As per the terms of agency contract, agent has rights to claim remuneration. Agent should not carry on delegation. He has also right to retain that amount from the total sum received by him on account of the principal.
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