The 10 Obligations of an Agent
An agent who is acting without any form of payment must show the same standard of care as if he/she was dealing with their own affairs. That is, the agent must exercise reasonable care and skill in the matter. If the agent is being paid then the standard of diligence expected is even higher.
The agent must not only exercise reasonable care, but the agent is also deemed to possess reasonable skill. This skill of course, will be according to the nature of the duties involved.
If it can be shown that the agent for payment did not exercise reasonable care and diligence, then the agent can be made liable for any losses suffered by the principal as a result. The agent can escape being liable for a mere error of judgement.
The obligations of an agent are:
- To exercise a reasonable standard of care.
- To comply strictly with the terms of the instructions that has been given.
- To tell his or her principal anything that comes to mind, which is likely to influence the judgement or decision of the principal.
- To give an account to t...
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