(a) State any four rights of an unpaid seller of goods (b) Give six duties of an agent to the principal

Answer Details

(a) Four rights of an unpaid seller of goods

An unpaid seller is one who has not received the whole of the price, or whose bill/cheque has been dishonoured. His rights are:

1. Right of lien: to retain possession of the goods until the price is paid, where the goods are still in his hands.
2. Right of stoppage in transit: where the buyer becomes insolvent, to stop the goods while they are still in the hands of a carrier and regain possession of them.
3. Right of resale: to resell the goods to another buyer where they are perishable or where the original buyer defaults after notice.
4. Right to sue for the price (or for damages): to take legal action against the buyer to recover the price or damages for non-acceptance.

(b) Six duties of an agent to the principal

1. To carry out the lawful instructions of the principal faithfully.
2. To act in good faith and in the best interest of the principal.
3. To exercise reasonable care, skill and diligence in performing his duties.
4. To render proper accounts of all money and transactions to the principal.
5. Not to disclose confidential information or make secret profit from the agency.
6. To perform the work personally and not delegate without authority.