DUTIES AND RIGHTS OF AN AGENT

Prepared by : Vimal Rajbanshi

Duties of an Agent
1. Duty to obey lawful directions of principal .
2. To carry out the work with reasonable care, skill and
diligence .
3. Duty to render an account .
4. Duty to act in good faith and in the interest of the principal.
5. Not to make any secret profit beyond the commission.
6. Not to delegate work or authority given by the principal.
7. Not to disclose the confidence
8. Duty not to use information obtained in the course of
agency.
Rights of Agent
1. Right to receive remuneration
2. Right to retain money
3. Right to lien
4. Right to indemnification of costs of incurred in a
lawful act.
5. Right to be indemnified for the act in good faith.
6. Right to compensation of loss
7. Right to stoppage of goods in transit.
Sub-Agent
 According to The Nepal Contract Act 2056 – “ an agent
can appoint a sub-agent according to nature of business,
provisions and practices f contracts relating to agency
with the consent of the principal.”
 A sub-agent is an agent appointed by an agent. The
relation of the sub-agent to the original agent is like that
of an agent to the principal. The duties and liabilities of
the original agent are like those of the principal. The sub-
agent should act under the control of the original agent
and appointment without the consent of the principal.
Substitute Agent
 A substituted agent is the person appointed by an
original agent to act for the principal in the
business of agency , with the knowledge and
consent of the principal.
Co- agent
 The co-agent acquires an equal right as the original
agent at the same time and occupies a similar rank.
If two or more agents are appointed at the time by
principal, they are called co-agents and they have
to work together cooperatively for the interest of
the principal.
Difference between sub-agent and Substitute agent

Differs in Sub-Agent Substituted Agent

1. Works for whom ? Works on the instruction Works for the principal and
and for the original agent his instruction.
(main agent )
2.Control Works under the control of Works under the control of
and with a responsibility to and with a responsibility to
the original agent. the principal.
3. Remuneration Ca demand his Can demand his
remuneration from the remuneration and
original agent. commission from the
principal.
4. Liability of agent after the appointment of after the appointment of
sub-agent , the original substitute-agent , the
agent will be liable to the original agent will be
appointment. discharged from agency.
5. Scope of authority. Has limited authority and Has more and wider
obeys the order of the authority because he works
original agent . for the principal.