Duties and Responsibilities of an Agent

The followings are among the duties of an agent towards his principal, except…

• to obey all the illegal instructions of the principal

• to communicate with the principal during emergency

• to make a proper and separate account for his principal

• having no conflict of interest

If an agent failed to fulfil any of his duties towards the principal, the following effects happen, except :

• the agent has breached his duty

• the principal may sue the agent for damages

• the agent may claim for indemnity

• The principal may refuse to pay the agent’s commission.

When an agent is given an authority, the agent is bound to act according to the principal’s directions / instructions. This is provided under…

• section 167

• section 165

• section 166

• section 164

Which case is relevant to explain the duty of an agent to obey the principal’s instructions ?

• Keppel v Wheeler

• Armstrong v Jackson

• Turpin v Bilton

• De Bussche v Alt

Section 165 of the Contracts Act 1950 is the provision relating to :

• agent’s duty to act according to the custom of the business

• duty of an agent to exercise care & diligence using all his professional skills

• to render proper account for the principal

• to obey all the principal’s order

An agent was ordered to sell the principal’s house. The agent received 2 offers. However, the agent did not inform the principal about the second offer which was higher than the first. The agent was then liable to pay the difference of the 2 offers to the principal. This is the case of :

• Keppel v Wheeler

• Armstrong v Jackson

• Turpin v Bilton

• De Bussche v Alt

The agent must prepare a proper account for his principal. This is required under …

• section 167

• section 165

• section 166

• section 164

The agent is bound to keep the money / property of his principal separately from his own property. This was held in the case of :

• Keppel v Wheeler

• Armstrong v Jackson

• Lyell v Kennedy

• De Bussche v Alt

Whenever there is emergency situation occurred, the agent is under a duty to communicate with the principal to get further instructions. This is required under …

• section 167

• section 165

• section 166

• section 164

Acting in good faith means :

• the agent has a strong faith in his actions

• the agent exercise his duty for the best interests of his family

• the agent acted for the best interests of his principal

• the agent has a sincere intention for his own interests