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Right and duties of agentBBA 102 INTRODUCTION

Agency is the relationship which subsists between the principal and agent, where the agent has been authorized to act for the principal or represent him in dealing with others/ 3rd partyS.135 CA- Agent is a person employed to do any act for another in dealing with third person

S.135 CA- Principal is the person to whom such act is done or who is so represented.

CONT..1. To obey the principals intruction To obey the principals instructions section 164 An agent must obey the principals instructions.If failed to obey; breach of contract of agency and the agent is liable for any loss sustained by the Principal. However, not to follow instructions that against the law.Turpin v Bilton (1843)5 Man & G 455. The agent has been instructed by the Principal to get the insurance for his vessel. However, the agent failed to do so. The vessel lost and as a result the Principal bare some loss.Held: the agent is LIABLE for breach of duty due to his failure to obey the Principals instructions. Thus the agent LIABLE to pay compensation.42. To work with reasonable skill and diligenceTo exercise care and diligence in carrying out his work and to use such skill as he possesses. section 165. an agent is bound to conduct business of the agency with as much skill as is generally possessed by person engaged in similar business i.e. : if the agent is employed for professional service, he must use all his skills & expertise that usually required for a same professional man.Keppel v Wheeler [1927]1 KB 577 the D (agent) was employed by the P (Principal) to sell his house. The first offer was accepted by the P with a condition. A few days later a higher offer (2nd offer) was made by X but this does not communicated to P. the court held that the D liable to pay the differences between 1st offer and 2nd offer3. To render proper accounts when required

Harry Parker Ltd v Mason [1940] 2 KB 590

- where the principal conspired with agent to make shame bets on the course and bets with street bookmakers contrary to the existing law

- agent had failed to apply, as agreed the money that the principal handed to him

- the Court of Appeal held that the principal could not recover it from agent on the general principal that money paid under an illegal contract is irrevocable

the whole arrangement between the barker and the agent was a conspiracy to deceive other backers .it was held against the provision stipulated in the street betting act 1906 and thus the backer was held to have no remedy against the agent4.To communicate with the principal in difficult situations.

Base on the SEC 167,when the agent meet some difficulty,he must try his best to communicate with the principal. When the agent can not communicate with principal, he must to make effort to ensure that principal is able to get the maximum benefit, and reduce losses. It is the duty of the agent .And he need to share his ideas and views with the principal to help him.

5.Not to deal on his own account.case:De Mattos v. Benjamin(1894) 63 LJQB 248 It was held that if a turf commission agent is employed to make bets he must pay over any winnings received by him as a result of such bets. Because based on the SEC 165,as a turf commission agent,he must give all the money to the principal which the agent use of his principal.He can't let the money become his own wealth.Because this is the agent's responsibility of the law mentioned.

6.DUTY OF AN AGENT NOT TO EARN OR MAKE SECRET PROFIT. ( SEC168)case:Regier vs. Campbell Stuart case (1939 Ch. 766) . M was employed as an agent by N to purchase a house for him. First, M purchased a house for 2000 in the name of nominee and then entered into contract with the nomtnee to purchase the same for 4500. He sold the same house for 5000. Thus, it is obvious that M wanted to earn secret profit. it was held that M was liable to account to N all the proft he earned in the transaction.

So in this case,the agent earned secret profit.But base on the law of SEC 168,he can't do that.So his principal can do many things for him,like: a)Recover the amount of secret profit earned from the agent. b)Repudiate the contract if it is disadvantageous to him.

7. To pay to his principal all sums received on his behalfSection 170

Kribbs v. Jackson,1957 Pennsylvania Supreme Courtthe defendant had acted as an agent of the plaintiff for the purpose of collecting rent on property that the plaintiff owned. The trial court found that the defendant had fraudulently concealed the full amount of rent collected and had thereby earned a profit in excess of his commission. The court ordered the defendant to account for the fraudulently-earned profit. The Supreme Court affirmed the trial court, reasoning that all profits made and the advantage gained by the agent in the execution of the agency belong to the principal.8. Not to delegate his authority October 31, 1995, shareholders A commission agent of a securities company to buy 500 shares of stock, price 15.40 yuan per share, effective for the period October 31, 1995, the same day, the agent price of 15.45 yuan per share A buy 500 shares of stock, when A intends to withdraw the commission, the agent told him, revocation delegate void. A discovery when the agent exceeds 0.05 yuan to buy shares, now has refused to recognize the above stock owned by all, and requested the return of the price of 7725 yuan of securities companies.

Securities companies accepted by customers. It should be in the client mandate, accurate and timely execute buy and sell orders to the commission, only this, the consequences of buying and selling securities company securities to be borne by the customer. No agency securities companies, beyond the conduct after the termination of agency or agency, in this case the securities company staff beyond the authorized scope of customers buy the stock, its consequences can only be within securities firms themselves, and should compensate the economic losses suffered by customers.

DUTY OF PRINCIPAL TO AGENTThe duties of principal to agent is provided under section 175 178

Section 175 agent to be indemnified against consequences of lawful actsSection 176 - agent to be indemnified against consequences of acts done in good faithSection 177 non liability of employer of agent to do criminal actSection 178 compensation to agent for injury caused by principals negligent.

Duties of Principal Towards Agent 1. To pay Commission / other agreed Remuneration

upon the completion of all contractual duties of the agent.S.172 of CApayment for the performance of any act due to agent until the completion of the act.

1. To pay Commission / other agreed Remuneration

Depends on the terms of the contract.If no amount- reasonable remuneration will be paid.If agency guilty of misconduct, he losses his right

S. 173..agent guilty of misconduct, not entitled to any remuneration.

Andrews v Ramsay & Co. [1930] 2 KB 635Held:The P IS NOT BOUND to pay the agents commission due to the fact that the agent had received secret profit or a bribe when performing his duties as an agent. 2. Not to willfully prevent or Hinder the agent from Earning Commission

Under the duty of P not to prevent the agent from gaining his commission.Examples whereby the P is said to willfully PREVENTING or Hinder the agent from Earning Commission 1) the P refused to accept the contract made by the A2) the P appointed another agent to carry on the same duty or to deprive the original agent from earning commission.i) Where the agent incurs some liabilities or losses in performing his duties.

Hichen, Harrison , Woolston & Co v Jackson & Sons Held:The agent is entitled to damages for anything incurred in the performance of his duties and to be reimbursed for whatever the agent had advanced or lost.

3. To indemnify/ reimburse the agent for lawful acts done in the exercise of his dutyKyall & Evat v Lim Kim Keat (1928) SSLR 206 The P had instructed the agent who were share broker to sell on her behalf the shares in a company registered in England which is according to the will of the deceased. The broker then made a contract to sell the shares to 3rd party. Unfortunately, it was discovered that the will had not been proved in England and the shares cannot be delivered. The agent was compelled to buy other shares for substitution and consequently suffered loss. The agent sued the P to recover hiss loss.Held: fail to disclose the fact that the shares cannot be delivered will render the P to indemnified the loss of the A.

ii) the A causes injury to 3rd party

S 176where one person employs another to do an act, the said agent does the act in good faith, the employer is LIABLE to indemnify the agent against the consequences of the act though it cause an injury to the rights of the 3rd person. iii) the A suffers injury during the course of his duties due to P.

S. 178 the P must make compensation to his agent in respect of injury caused to the agent by the Ps neglect or want of skill. However, if the agent is employed by the P to do a criminal act, the P IS NOT LIABLE to indemnify the A any commission for any consequences of the said act, even though there was an express or implied promise of the P for such indemnify.

S. 177 where one person employs another to do an act which is criminal, the employer IS NOT LIABLE to the agent. THE END