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Agent is employed
To market a particular product To penetrate a market known especially to the agent by virtue of his knowledge, skill, experience and personal attributes To secure sub-agents to sell a product To elicit relevant information relevant to the principals business To represent the principal at trade fairs, publicity events and conferences To secure credit on behalf of the principal To procure certain goods or services for the principal. To secure insurance for goods, finance from banks and lenders, freight space for ship owners, legal advice in a foreign country..
Authority of an agent
The authority that a principal gives an agent maybe actual authority or ostensible authority. Actual authority is the authority given to the agent by contract with the principal either expressly, impliedly, or by conduct or conferred on him by law as in the case of agency by necessity.
Ostensible authority or apparent authority is the authority of an agent as it appears to others. Four conditions must be satisfied for a third party to rely on such agents:(1) a representation must have been made to the third party; (2) it was made by the principal or by a person who had actual authority; (3) the third party relied on the representation; and (4) the principal had capacity to contract.
Unnamed principal
Here the agent discloses that the fact he is contracting as an agent but the identity of the principal is not revealed. in such a case he will ot be personally liable for the contracts he enters into.
Named principal
Here the agent contracts on behalf of the principal. The general rule is that the agent does not incur any personal liability. There are some exceptions to this rule. they are
Duties of an agent
To exercise due care and diligence in the performance of his duties and to apply any special skills which he profess to possess. The duty is measured against the reasonable standard of care required of the type of professional that the agent claims to be.
the duty to comply with lawful instructions. The agent is obliged to perform according to the instructions in the contract and/or instructions meted out by the principal from time to time during the duration of the contract. This duty is qualified only when the instructions fall within: (a) the terms of the contract between the principal and the agent. (b) the law, and (c) any professional rules of conduct under which the agent is subject.
Duty not to delegate and the duty of confidence. Delegatus non potest delegate Fiduciary duties
Termination of agency Termination by act of parties By mutual consent On breach of a condition On the completion of the duration of the agency
Termination by operation of law Death of either party Insanity Frustration of the contract.