Duties of the agent

Duty to execute mandate:

Case: Pannalal Jankidas v. Mohanlal
A commission agent purchased goods for his
principal and stored them in a godown pending
their despatch. The agent was under instruction
to insure them.
He charged the premium but did not insure.
He was held liable when loss took place.
Duty to follow instructions or customs
Section 211
CASE: lilley v. doubleday:
The agent was asked to keep the goods in a
specific warehouse. He kept some of the goods
at another warehouse, which got destroyed.

The agent is liable for any disobedience or

departure form the instructions
Duty of reasonable care and skill: Section 212

• An agent fails to send the principal’s money in

time, he may be liable for the money and loss
of interest but he cannot be liable if the
principal becomes insolvent because of this.
• A bank instructed by the plaintiff to collect
certain amount on his behalf and to remit it to
him. There was no specific instruction as to
the manner . The bank sent by ordinary post.
Case: Keppel v. Wheeler: agent was appointed to sell a
house. When he received an offer, he accepted the same
“subject to contract”. subsequently a higher offer was
received. But he failed to pass it on to the principal.

Case: Pannalal Janikidas v. Mohanlal:

An agent was to insure certain goods, which he failed.
Goods subsequently were lost in an explosion at the
docks.
It was said even if they were insured the same could not
be covered by the insurance as fire was an expected
peril under the contract of insurance
Later on government passed an order to
compensate for the loss caused but is said it will
pay only half of the money if the goods were
uninsured. Thus leading to loss to the principal.
The agent was held liable for the loss caused.
• Section 214: agent’s duty to communicate
with principal
• Section 215: right of principal when the agent
deals, on his own account, in business of agency
without principal’s consent
If in doing so ,
1. A material fact has been dishonestly concealed
from him, or
2. The dealing of the agent has been
disadvantageous to him.
Then the principal can repudiate the transaction.
• Section 216: principal’s right to benefit gained
by agent dealing on his own account in
business of agency.
This duty arises out of the fiduciary relationship
Case: De Busche v. Alt
Section 218: pay the sum received for the
principal
• Subject to the provisions of section 217.
• the agent has to right to retain his share of
omission from the money which has to be
paid to the principal.
Section 213: agent’s account
Case: Narandas v. Pappamma:
• can the agent also ask for the disclosure with
regard to the accounts?
• This is an equitable right with the agent. But
there lies no statutory right.
Case: Ram Lal v. Asian Commrel:
• It is an unusual right with the agent. Can be
used only in specific cases.
Sub agency or delegation of work assigned to
the agent: