Question 3

Discuss the duties of an agent towards his principal.

Definition
Agent-the person employed to do an act for another or to represent another in dealing
with third person
Principal- the person for whom such act is done or who is so represented.

Law of agency is governed by Part X of the Contract Act. (Sec 135-191)

Generally, depend on term of contract of an agency but if not, duties are to be
governed by s164-178

10 main duties are

1- To obey the principals instruction s164
-Failure to obey, breach of contract of agency A is liable for any loss caused
by the breach
-If unlawful instruction no duty to obey
-Turpin v Bilton the contract held the agent is liable fo breach of duties due
to his failure to obey the principals instructions. He is lible to pay
compensation for the loss.
2- If no instruction give, must act according to customers s164
3- To exercise care and diligence in carrying out his work s165
-eg : if an agent is appointed to sell goods, it is his duty to obtain the price
possible.
-if an agent received better offer upon obtaining the 1
st
offer which was
conditionally accepted, he must inform this to principal.

Keppel vWheeler (1992) 1KB 557
4- To render proper account when required s166
5- To pay his principal all sum received on his behalf s171
6- To communicate with the principal during emergency or difficulties s142
7- Not to let his own interest conflict with his duties s168
Wong Mun Wai v Wong Tham Fatt
8- Not to make any secret profit out of the performance of his duties s168
Tan Kiong Hwa v Andrew , Andrew v Ramsay
9- Not to disclose confidential information or documents entrusted to himby his
principal.
10- Not to delegate his authority (delegatus non potest delegare = delegate cannot
delegate)