The representation when acted upon by the contractor entering into a contract with the agent operates as an estoppel, preventing the principal from asserting that he is not bound by the contract. It is irrelevant whether the agent had actual authority to enter into the contract."" Thus this where the agent claims to be performing within the scope of their actual authority granted by you, but is in fact acting outside of it (or is no longer your agent at all). In this situation, you may not be able to get out of an agreement made with third parties.
THE DUTIES OF AN AGENT.
One of the basic foundations of the relationship between agent and principal is trust this in turn leads to the fulfillment of various duties by the agent for the principal, these include:.
i. Duty to fulfill the principal's instructions: An agent has to carry out your instructions. If an agent goes beyond what is expected, and then causes you loss, they are normally liable to cover that loss.
ii. Duty to act in person: This implies that unless specified before hand the agent has the ultimate responsibility to act on behalf of the principal in all given or specified transactions or situations.
iii. Duty to act in good faith: In summary this means that an agent should at all times act in the best interests of the principal and ensure that his or her interests do not prejudice or interfere with those of the principal.
iv. Duty to make full disclosure of any personal interest: At all times an agent must make known to the principal all the events of which he or she is aware which might influence the principal into entering any given negotiation or transaction. .
v. Duty not to make a secret profit: This is self explanatory in that an agent cannot make extra undeclared profit or commission from any transaction he or she may have carried out on behalf of the principal unless specified otherwise or beforehand.
vi. Duty to exercise reasonable care and skill: It is specified under both the Law of contract and the law of negligence that an agent is required to exercise due care and skill in the performance of their obligations (http://artslaw.
