BBA 211 BUSINESS LAW

ASSIGNMENT SHEET
NAME: CHAN MAN KEUNG
STIDENT NO.: 201222211H

QUESTION 1a

Agents () are people (and corporation) appointed by a principal to bring that principal
into a contractual relationship with a third party. The agent is bound to follow his principals
instructions. In section 4 of the Hong Kong Agency Law, the agent cannot be exceed the
authority given by the principal. If an agent who exceeds his actual authority may be sued by the
principal for acting in breach of his contract. In agency law perspective, the actual authority of an
agent are as follows:

First, the agent has the authority to claim remuneration or commission for services performed.
The agent represent the principal to claim the damages to the person who branches the contract.
Usually the amount of remuneration or commission is stated in the agency agreement. Whenever
it is not specified in black and white, the court will imply a term into the agreement requiring the
reasonable amount to be paid.
Second, the agent has the authority to claim an indemnity against the principal for all expenses
reasonably incurred in carrying out his obligation. The agent has the right to receive the service
fee from the principal which is necessary to the process of the claim or the increase of the
probability to receive the claim.

Third, the agent has the authority to exercise a lien over the principals property. The lien allows
the agent to retain possession of the principals property that is lawfully in the agents possession
until any debts (commission) due to the agent, have been paid by the principal.

Question 1b
The importance for agents to act within their authorities are as follows:
- Avoid to perform the act exceeds his actual authority.
- Avoid conflicts of interests
- Avoid to receive any secret profits or bribes
Question 2