THE DUTIES OF THE AGENTS TO PRINCIPAL The duties of an agent depend primarily on the contract of agency if there is one. Subject to any such express terms‚ the agent owes a number of implied duties or obligations to his principal. It is the agency relationship as such that gives rise to these obligations so that‚ as a general rule‚ they fall as much on the gratuitous agent as on the paid agent. 1. Obey the Principal’s instructions Section 164 states‚ The agent must obey the instructions given to
Premium Contract
DISCUSS THE CAUSES AND COSTS ASSOCIATED WITH PRINCIPAL AGENCY PROBLEM (10) Principal agency problem refers to a conflict arising when people appointed (agents) and entrusted to look after the interests of others (principals) use the authority‚ power or resources for their own benefit instead. It is a pervasive problem and exists in practically every organisation whether a business‚ church‚ club or government. Organisations try to solve it by instituting measures such as tough screening processes
Premium Conflict Political corruption Fiduciary
elaborate upon the duties that a principal owes to an agent. Answer: An agency is the creation of a contract entered into by mutual consent between a principal and an agent. By agency‚ a principal grants authority to an agent to act on behalf of and under the control of the principal. A principal owes certain contractual duties to his/her agent by an agent will serve the principal loyally and with obedient. The principal duties can be found in section 172
Premium Contract Contract law Gentlemen's agreement
Discuss the following proposition in the context of the professional sporting clubs in this case (you may choose to focus upon only the Essendon Football Club): ‘Principal-Agent problems are caused by insufficient oversight by company directors.’ Corporate Governance is a complex field that started to develop very quickly this last decade. The collapse of international firms‚ the financial crisis‚ the international scandals‚ the pressure from the governments and non-profit organizations… are all
Premium Principal-agent problem Governance Management
Freight Forwarders can act as either a Principal or Agent. Describe in your own words the differences between each. Under what circumstances might a Freight Forwarder want to act as either a Principal or Agent? When Freight Forwarders act as principal‚ they assume all responsibility and liability for the pick-up‚ handling‚ transporting and delivery of the shipment as a regular common carrier would. Their name is on the BOL. When a Freight Forwarder acts as an agent‚ their liability ends once they
Premium Commercial item transport and distribution Transport Cargo
DUTIES OF AGENT TO PPRINCIPAL Agent’s duty in conducting principal’s business 164. An agent is bound to conduct the business of his principal according to the directions given by the principal‚ or‚ in the absence of any such directions‚ according to the custom which prevails in doing business of the same kind at the place where the agent conducts the business. When the agent acts otherwise‚ if any loss be sustained‚ he must make it good to his principal‚ and‚ if any profit accrues‚ he must account
Premium Legal terms Breach of contract Contract
(Sec. 211): The first duty of every agent is to act within the scope of the authority conferred upon him and perform the agency work according to the directions given by the principal. When the agent acts otherwise‚ if any loss be sustained‚ he must make it good to the principal‚ and if any profit accrues‚ he must account for it. Illustrations: (a) Where the principal instructed the agent to warehouse the goods at a particular place and the agent warehoused them at a different warehouse
Premium Money English-language films Tort
1. INTRODUCTION Agency is a fiduciary relationship created by express or implied contract or by law‚ in which one party (the agent) may act on behalf of another party (the principal) and bind that other party by words and/or actions. The etymology of the word agent or agency says much. The words are derived from the Latin verb ago‚ agere (the respective noun agens‚ agentis). The word denotes one who acts‚ a doer‚ force or power that accomplishes things.1 Agency is the exception to the doctrine
Premium Contract Contract law
TOPIC 1: AGENCY 1. DEFINITION OF AGENCY "Agency is the relationship that exists between two persons‚ when one‚ called the agent‚ is considered in law to represent the other‚ called the principal‚ in such a way as to be able to affect the principal ’s legal position in respect of strangers to the relationship by the making of contracts or the [sale or purchase] of property." So‚ an agent is someone who represents another‚ called the principal‚ in dealings with third persons. Agency is therefore
Premium Contract
AGENCY PROBLEM OF KFC SUBMITTED TO: BINDU KHANAL (FACULTY‚ APEX MBA) SUBMITTED BY: ASHMITA LAMICHHANE NAMRATA MAINALI SMRITI GAUTAM (PARYA) Introduction to agency problem Agency Problem is an economic‚ political‚ legal and corporate governance concept that aims to explain the difficulties in motivating one party (the agent) to act in the best interests of another party (the principal) instead of in his own interest. A conflict of interest inherent in any relationship
Premium KFC Fast food restaurant Pizza Hut