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Thursday, 11 August 2011

Discuss the rights and duties of Agent and Principal and also discuss kinds of agent?



AGENT :-
A person who is employed by the principal in order to represent the business dealings is called an agent.

Important Kinds of An Agent :-

1. Broker.

2. Commission Agent.

3. Decredere Agent.

4. Co-Agent.

5. Sub-Agent

6. Auctioneer.



RIGHTS OF AGENT or DUTIES OF A PRINCIPAL :-
Following are the important rights of an agent :

1. Right of Remuneration :-
It is basic right of an agent that he should receive the remuneration of his services.


2. Right of Compensation :-
In case of injury caused to agent by the negligence of the principal may be compensated by the principal.


3. Right to Retain Money :-
In conducting the business if an agent advances or spends some money for the betterment of a business. He has also right to retain that amount from the total sum received by him on account of the principal.


4. Right of Lien :-
An agent has also a right to retain the goods or property of a principal till the payment in due is received by him.


5. Indemnity Right :-
An agent has a right to be indemnified against the liabilities falls on him.



DUTIES OF AN AGENT :-
Following are the important duties of an agent :

1. Obey the Instruction :-
It is the basic duty of an agent that he should act upon the lawful instructions of the principal.


2. Conducting Business :-
It is the duty of an agent that he should conduct the business of a principal. While performing the services he should keep in view the directions of the principal or prevailing customs in business.


3. Showing of Accounts :-
It is the duty of an agent that he should maintain the accounts properly and submit it to the principal on his demand.


4. Return of Undue Profit :-
If an agent has earned undue profit from the business, he should return it to the principal.


5. Use of Skill and Knowledge :-
It is the duty of the agent that he should perform his duties with as much skill and knowledge as is generally shown by an ordinary prudence in similar business.


6. Communication With Principal :-
It is the duty of the agent that he should give all the information's about the business to the principal. He should seek instructions from his principal. He should not keep anything secrets from his principal.


7. Payment of All Sum :-
It is the duty of an agent to pay his principal all the sums received on his account.


8. Principal Death Case :-
If principal dies or becomes insane, it is the duty of the agent that he should protect or save the goods as he was doing in the life of the principal. Now he will protect the interest of the legal heirs.


9. Separate Account :-
An agent should not mix his account with the principal. It is the duty that he should keep the accounts of a principal separate.


10. Performance With Honesty :-
It is the duty of an agent that he should deal the business honestly. If he conducts the business dishonestly then he is not entitled to receive the reward of his services.



PERSONAL LIABILITIES or GROUNDS ON WHICH AN AGENT CAN BE SUED

1. Where he does not disclose the name of the principal.

2. When the agent receives money by mistake or fraud.

3. When agent performs any act without the authority of the principal but pretends to be an agent.

4. If an agent has made a contract with the foreigners for the sale and purchase of goods.

5. If agent makes a contract on his own name instead of his principal.

6. If the agent has agreed to accept the liability of the third party.

7. Where the agent has personal dealing with the third party.

8. If an agent signs on the bill of exchange without telling that he is signing on the behalf of the principal.

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