Duties of the agent Flashcards
Duties of the agent (1)(2)
1 - Comply with any express, contractual duties instructions
2- And any implied duties
Imlied duties of the agent (1)
Personal performance
John McCan v Pow
Not to delegate to sub agent (estate agent)
- Needs expess or implied authority from P to do this
No express authority and implied authority could not be found anywhere either
Implied duties of agent (2)
Obey lawful instructions
*Bertram Armstrong v Godray - sell stock at share price
A instructed to sell shares when their value reached a certain precise. A had no discretion to wait in order that the share price would increase beyond the fiqure specified by P (IT IS A STRICT OBLIGATION, SO IF AGENT DISOBEYS THEN WILL BE LIABLE EVEN WHERE NOT FOLLOWING INSTRUCTIONS IS A REASONABLE COURSE OF ACTION
- Where the P’s instructions are clear and unequicoval, the agent is duty bound by it.
- Even if the agent genuienly believes that it is for the P’s benefit/be in their best interests
WOULD BE LIABLE IN DAMAGES
Implied duties of agent (3)
Exercise reasonable care and skill
Chaudry v Prabakar (friends)
Failure to find car that had not been in an accident. A had breached duty of care by not taking steps to ensure that he had found a car which met the principals stipulation of one not being in an accident previously
Implied duties of agent (4)
Avoid conflict of interests
Armstrong v Jackson
Stockbroker (agent) instructed by his principal to buy 600 shares in a company. A had shares in this company already and elected to sell his shares to the principal
Agent placed himself in a conflict of interest
(Best interests of principal is lower price, best interests of agent to achieve the highest possible sale price
Agent must surbodinate his interests to those of the principal
Agent may be personally liable ..
for contract entered into with third party eg. Keighly Maxsted
A may lose remeuneration or commission otherwise payable to A, if in breach of agreement with P eg. express instructions
