According to section 182. “An agent is a person employed to do any act for another or to represent another dealing with third persons”.
So, an agent is a person who is employed by the principal in order to represent him in business dealings with third parties. Anyhow, let’s check below rights and duties of agents.
See Also: Types of Agents
Rights and Duties of Agents
Rights of Agent
The rights of agents against his principal are as under:
Right to Retain Money
An agent has right to retain, out of any sums received on account of the principal in the business of agency for any advances made, or expenses properly incurred by him in the business of agency or for any remuneration payable to him for acting as agent. Sec, 217.
Right of Remuneration
An agent is entitled to his remuneration in the absence of any special contract, after the completion of the business.
But an agent is not entitled to any remuneration in respect of that part of the business which he has misconducted Sec. 220.
Right of Lien
In the absence of any contract to the contrary, an agent is entitled to retain goods, papers and other property whether movable or immovable of the principal received by him until the amount due to him for commission disbursements and services in respect of the same, has been paid or accounted for to him. Sec. 221.
Right to Indemnity
The employer of the agent is bound to indemnify him against the
consequences of all lawful acts done by such agent in the exercise of the authority conferred upon him Sec. 222.
Right of Compensation for Actions
An agent is entitled to be indemnified by the principal against the consequences of an act done by the agent in good faith, though they cause an injury to the rights-of third person. Sec. 223.
Right of Compensation for Principal’s Neglect
The principal must make a compensation to his agent in respect of injury caused to such agent by the principal’s neglect or want of skill.
See Also: What is Performance of Contract
Duties of Agents
The duties of agents of his principal are as under:
To Conduct Business
An agent is bound to conduct the business of his principal. according to the directions given by the principal or in the absence of any such directions according to which prevails in doing a business of the same kind at the place where agents conduct such business. Sec.211.
Agent’s Skill and Diligence
The agent is bound to conduct the business of the agency with as much skill as is generally possessed by person engage in similar business unless the principal has notice of his want of skill. Sec. 212.
Agents Accounts
An agent is bound to render proper accounts to his principal on demand. Sec. 213.
Communication with Principal
It is the duty of agents, in cases of difficulty, to use all reasonable diligence in communication with his principal in order to obtain his instructions. Sec. 214.
Cancellations Transaction
When the agent deals, on his own account, in the business of agency without principal’s consent, the principal may repudiate the transaction.
If the case shows either that any material fact has been dishonestly concealed from him by the agents, or that the dealings of the agent have been disadvantageous to him. Sec 7215
Return of Profits
If an agent deals in the business of agency without the knowledge of his principal, the agents is bound to return all the profit earned from any such transaction.
Payment of All Sums
An agent is bound $0 pay to his principal all sums received on his account after deducting remuneration of his services etc. Sec. 218.
For Example: A is a driver of B’s delivery van. While returning from other city he carries the goods of a person on hire for $1000.
See Also: Difference Between Condition and Warranty
Now he is bound to return this money to his principal (the owner of the van).
Misconduct of Business
An agent who is guilty of misconduct in the business of agency is not entitled to any remuneration in respect of that part of the business, which he has misconduct. Sec. 220.
To take Reasonable Steps
When an agency is terminated due to the death or insanity of the principal, the agent is bound to take all reasonable steps in order to protect the interest of the legal representatives of the principal.
To Obey Lawful Instruction
An agent is bound to accept and obey all lawful instructions given by the principal from time to time for the business of the agency.
