The Agent’s Duties and Obligations

This short article looks at the duties and obligations of an agent and points to discuss.

There are a number of regulations that apply some as a result of common law and others as a result of the Commercial Agents (Council Directive) Regulations 1993.

Agents are obliged:

  • to act in good faith and conscientiously
  • to obey all reasonable lawful instructions of the principal
  • to act within the limits of their authority
  • to avoid any conflict of interest with the principal
  • to disclose all material facts to the principal and to refrain from divulging confidential information to third parties
  • not to make a secret profit or accept bribes
  • to account to the principal for property and money of the principal which is under the agents control and
  • not to delegate their authority without the principal’s consent.

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