Agency Law Flashcards
Briefly explain agents’ rights and obligations towards the principal.
Agent’s rights:
1. Remuneration for services performed
2. Indemnity for all expense and costs incurred in the performance of the services
3. Be put in condition to perform: eg get access to documents, info, all necessery elements to perform.
4. Exercise a lien over the property of the principal: In some cases, the agent can hold onto the principal’s belongings until they get paid or until something else agreed upon happens.
Agent’s obligations:
1. Perform accordning to the instructions given by the principal.
2. Exercise Due care and skill: The agent should use their skills and knowledge to do the best job they can.
3. Carry out instructions personally The agent can’t hire someone else to do the job without the principal’s okay.
4. To Account: The agent is required to account for all money and other property received on the principal’s behalf and should keep his own property separate from that of the principal.
5. Not to permit a conflict of interest to arise: He has always to act granting the interest of the principal and not of his personal one.
6. Not to make a secret profit or misuses of confidential information: An agent should not use his position to achieve financial advantages for him, unless upon disclosure, his principal authorizes him to proceed with the self-dealing.
7. Not to take bribe:
reimburse (återbetalas)
lien (panträtt)
How does the Consultancy Agreement regulate non-competition and how do these clauses work under such contract?
The consultant (agent) cannot perform services for the company’s competitors or even intend to do so. Before taking on any work with a competitor, the consultant must notify the company in advance. This gives the company a chance to see if the new work would conflict with their interests. If the company decides the new work does conflict with their interests, they can immediately terminate the consultancy agreement.
