This document discusses the duties and rights of a principal towards their agent. The duties of the principal include indemnifying the agent against lawful and good faith acts, compensating the agent for injuries caused by the principal's neglect, and paying any agreed commission or remuneration. The rights of the principal allow them to enforce the agent's duties, recover damages or secret profits made without consent, and resist indemnity claims if the agent acted as principal.
This document discusses the duties and rights of a principal towards their agent. The duties of the principal include indemnifying the agent against lawful and good faith acts, compensating the agent for injuries caused by the principal's neglect, and paying any agreed commission or remuneration. The rights of the principal allow them to enforce the agent's duties, recover damages or secret profits made without consent, and resist indemnity claims if the agent acted as principal.
This document discusses the duties and rights of a principal towards their agent. The duties of the principal include indemnifying the agent against lawful and good faith acts, compensating the agent for injuries caused by the principal's neglect, and paying any agreed commission or remuneration. The rights of the principal allow them to enforce the agent's duties, recover damages or secret profits made without consent, and resist indemnity claims if the agent acted as principal.
This document discusses the duties and rights of a principal towards their agent. The duties of the principal include indemnifying the agent against lawful and good faith acts, compensating the agent for injuries caused by the principal's neglect, and paying any agreed commission or remuneration. The rights of the principal allow them to enforce the agent's duties, recover damages or secret profits made without consent, and resist indemnity claims if the agent acted as principal.
PRINCIPAL KETAN CHAUDHARI T.Y.B.com (HON) INSURANCE LAW ROLL NO:-11 CB&I SUBMITED TO NAKUNJ SIR
Duties And Rights Of Principal
Duties Of Principal:The duties of a principal towards his agent are the rights of the agent against the principal. The rights of an agent have already been discussed. To indemnify the agent against the consequences of all lawful acts. The principal is bound to indemnify the agent against the consequences of all lawful acts done by such agent in exerise of the authority conferred upon him (sec.222).
To indemnify the agent against the
consequences of acts done in good faith. Where one person employs another to do an act, and the agent does the act in good faith, the employer is liable to indemnify the agent against the consequences of that act, though it causes an injury to the rights of third person (sec. 223). Where however any person employs another to do an act which is criminal, the employer is not liable to the agent. Either upon an express or an implied promise. To indemnify him against the consequences of that act (sec. 224).
To indemnify agent for injury caused by principals
neglect. The principal must make compensation to his agent in respect of injury caused to such agent by the principals neglect or want of skill (sec.225)
To pay the agent the commission or
other remuneration agreed.
Rights Of Principal The principal
can enforce all the duties of the agent which are indirectly the rights of the principal. When an agent fails in his duty towards the principal the principal has the following remedies against the agent: To recover damages. If the principal suffers any loss due to disregard by the agent of the directions by the principal. Or by not following the custom of trade of the absence of directions by the principal. Or where the principal suffer due to lack of requisite skill care or diligance on the part of the agent. He can recover damages accuring as a result from the agent.
To obtain an account of secret profits and
recover them and resist a claim for remuneration. If the agent without the knowledge and assent of the principal makes any secret profits out of the agency the principal has the right to recover them from the agent. Not only this the agent also forfelts his right to any commission in respect of the transaction. Where the agent makes a secret profit the contract with the third party is not rendered void.
To resist agentss claim for indemnity
against liability incurred. Where the principal can show that the agent has acted as principal himself and not merely as agent. he can rasist the agents claim for indemnity against liability incurred by him in such a transaction.