Duties and rights of agents, delegation and termination of agency sheetEssay frameExplain the duties of an agent and the ways in which an agency may be terminated.
How to lay out the answer. Follow the frame, then write it in your own words.
- 1 · Open in two lines. An agent acts in a position of trust, so the law imposes strict duties on him. The relationship ends in defined ways.
- 2 · Duties of an agent.
- Obey lawful instructions; reasonable care and skill.
- Personal performance (delegatus non potest delegare) and its exceptions.
- Good faith; no secret profit; account; confidentiality.
- 3 · Agent's rights in brief. Remuneration, indemnity, lien.
- 4 · Termination by act of the parties. Agreement, revocation, renunciation, completion.
- 5 · Termination by operation of law. Death, insanity, insolvency of the principal, expiry, destruction, illegality.
- 6 · Irrevocable agency and notice. Authority coupled with an interest; third parties protected until they learn of the termination.
- 7 · In Sri Lankan business. A distributor's sales agent taking secret commissions; notifying customers when an agency ends.
- 8 · Close in one line. Duties protect the principal; rules on termination protect both parties and third parties.
Scoring tip: Split the answer clearly in two halves: duties, then termination. Examiners mark them separately.