Law of agency - Wikipedia
agency relationship is created when one party adopts a contract entered into on his behalf by another who at the time acted within their authority (transfer). This chapter in a forthcoming book justifies the conventional characterization of common-law agency as a fiduciary relationship. An agent serves as the. The agent owes the principal duties in two categories: the fiduciary duty and a set The law infiltrates the contract creating the agency relationship and reverses.
Rights and obligations of the Principal The Principal will be liable for the actions of the Agent that are carried out in accordance with their authority.
The Principal is also subject to the obligations contained in the agency agreement.
These will by their nature vary between circumstances, but common obligations of Principals include: Rights and obligations of the Agent The relationship between an Agent and their Principal is, much like that between a solicitor and their client, a fiduciary relationship. In the agency relationship, the Agent owes a fiduciary duty to the Principal, which compels the Agent to act only in the best interests of the Principal.
The legal relationship of agency | Brisbane Lawyers | Dundas Lawyers
The fiduciary duty prevents the Agent from acting in a manner that: Outside of the fiduciary duty an Agent owes their Principal, an Agent also has other duties, including by not limited to: Liability for actions of the Agent The appointment of an Agent is a serious decision that carries great risk for the Principal. The major source of risk arises due to the liability for actions committed by the Agent that are within the scope of their authority.
It is discussed above how the Agent can create legal obligations between the Principal and third parties that are enforceable by such third parties against the Agent.
The Agency Relationship is Fiduciary Depending on Trust Many people carry out the business of others, acting as agents having authority to execute acts in favour of their principal or represent him in transactions with others. These transactions may relate to immovable property, such as the sale, purchase, transfer, acceptance of transfer, payments, collection of money, mortgaging, assignment, declarations, rental and other relevant issues.
They may also relate to commercial business, trade, investments, banking or even shareholding and money saving. The authority may be written, verbal or implied as long as it allows the agent to act for his principal and that he has his consent to act in that manner. The agent is not a servant or an independent contractor, since he is not under the control or the supervision of the principal.
Cyprus Property | The Agency Relationship is Fiduciary Depending on Trust
The agency relation is fiduciary depending on trust between the principal and the agent. For this reason the agent has higher duties deriving from the principles of equity rather than the agency agreement.
In this respect, the agent is obliged to abstain from gaining unlawful profit during the exercise of his duties, to act with reasonable diligence and care and to give account to his principal.
In the event the agent contravenes any of his obligations, the principal is entitled to claim damages for the actual loss and damage he suffered and the loss of his real profit.
He is also entitled to claim any amount he gave or entrusted to the agent plus interest from the date of the claim and request an account wherever necessary; however, he cannot claim any expected profit in the event the agent would have executed his duties.
With regard to the claim for giving accounts, this remedy is only available where the principal cannot prove the amount he is entitled to.