Lawgist211Agent's duty in conducting principal's business
An agent is bound to conduct the business of his principal according to the directions given by the principal, or, in the absence of any such directions, according to the custom which prevails in doing business of the same kind at the place where the agent conducts such business. When the agent acts otherwise, if any loss be sustained, he must make it good to his principal, and if any profit accrues, he must account for it.
Illustrations
(a) A, an agent engaged in carrying on for B a business, in which it is the custom to invest from time to time, at interest, the moneys which may be in hand, omits to make such investment. A must make good to B the interest usually obtained by such investments.
(b) B, a broker, in whose business it is not the custom to sell on credit, sells goods of A on credit to C, whose credit at the time was very high. C, before payment, becomes insolvent. B must make good the loss to A.
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- 211 Agent's duty in conducting principal's business
- 212 Skill and diligence required from agent
- 213 Agent's accounts
- 214 Agent's duty to communicate with principal
- 215 Right of principal when agent deals, on his own account, in business of agency without principals consent
- 216 Principal's right to benefit gained by agent dealing on his own account in business of agency
- 217 Agent's right of retainer out of sums received on principal's account
- 218 Agent's duty to pay sums received for principal
- 219 When agent's remuneration becomes due
- 220 Agent not entitled to remuneration for business misconducted
- 221 Agent's lien on principal's property
