Chapter 4 : Agency
Actions That Could Be Taken By the Principal 4. The principal may refuse to pay commission or remuneration to the agent 5. Principal may sue the agent & 3rd party for damages, for any loss he suffered due to entering the contract 4.7.9 Not to Disclose Confidential Information Or Documents Entrusted To Him By His Principal
An agent must not disclose any confidential information or documents entrusted to him by the principal to other party. The agent is bound to keep the information to himself only.
4.7.10 Not to Delegate His Authority
4.8
The maxim delegatus non potest delegare (a delegate cannot delegate) applies in the relationship of agency. An agent is not permitted to delegate to another person any duties or powers which have been entrusted to the agent personally. However, there are exceptions to this general rule: i. Where the principal approves or consents to the delegation of the authority. ii. Where it is presumed from the conduct of the parties that the agent has power to delegate his authority. iii. Where the customs of the trade or business permits the delegation. iv. In case of necessity or unforeseen emergency. E.g. illness of agent. v. Where the act to be done purely ministerial or clerical and does not involve the exercise of discretion.
TERMINATION OF AGENCY An agency that have been existed can be terminate in a different of ways. Termination means the ending of the contract of agency between principal and agent. Agency can be terminated in one of the following ways:
By agreement
By the principal revoking the agent's authority
By the agent's renunciation
By performance
By operation of law
By frustration
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