Duties of agent
To carry out the instruction given by principal he must do all works given by the principal, in case of any failure on the part of the agent, agent is personally held liable for the 3rd party. if the principal suffers any loss the agent should compensate for the loss.
Pannalal Jankidas v/s Mohanlal
The agent was instructed by the principal to obtain insurance for the goods stored in the godown but the agent fails to obtain the insurance, goods were destroyed in an explosion. The agent was made liable to compensate to the principal.
Sec:211, An agent is bound to conduct the business of his principal as per the direction given by the principal or in the absence of instruction, he should carry the business as per the custom prevailing. If the agent fails to do so and if the principal suffers any loss then the agent must compensate for the loss.
Sec:212, It states an agent is bound to carry the business with all reasonable skill which is generally followed by other businessmen. The agent is always bound to act with reasonable care and skill in case of failure or negligence, he must compensate for the loss or damage suffered by the principal. It is the duty of an agent to use all the reasonable care of communicating with his principal.
Sec:215, If the agent deals the business of his master on his own amount without obtaining the consent of his principal or if he conceals the material information from the principal then the principal may repudiate/cancel the contract. , if the contract is disadvantageous to him.
Duty to not make a secret profit
It is the duty of the agent not to make any secret profit in the business of the agency, as his relationship is based on fiduciary relationship (based on trust and confidence) .ex-
(he shall avoid receiving bribe from 3rd party, receive additional remuneration.)
An agent is bound to pay all the sums which are received from the business to the principal, he is entitled to deduct all the lawful charges from the sum he receives.
An agent is bound to submit proper accounts of all the transaction from time to time and submit to master.
Sec:190, Assignment of work from one person to another, “Delegates non-protest delegate”. Delegated work cannot further be delegated without the permission of the principal.
