(a) Who is an agent? (b) Give six duties of an agent. (c) State three rights of an agent.

Answer Details

(a) Who is an agent?

An agent is a person who is employed and authorised by another person, called the principal, to act on his behalf, especially to bring the principal into a contractual or business relationship with a third party. The agent represents the principal and acts in the principal's name.

(b) Six duties of an agent

• To obey the lawful instructions of the principal and act strictly within the authority given to him.
• To exercise reasonable care, skill and diligence in carrying out the work assigned by the principal.
• To act in good faith and in the best interest of the principal, avoiding any conflict of interest.
• To render a true and proper account of all transactions and monies handled on behalf of the principal.
• To keep the principal's affairs and business secrets confidential.
• Not to make any secret profit or accept bribes from a third party; any commission or profit made must be disclosed and handed over to the principal.

(c) Three rights of an agent

• The right to be paid the agreed commission or remuneration for services rendered.
• The right to be reimbursed for all lawful expenses incurred in the course of the agency.
• The right of lien, that is, to retain the principal's goods in his possession until he is paid what is due to him.