The agency relationship between an agent in the principle is based on a contract between them and it is a fiduciary relationship. The duties of an agent to principle are to follow the principles instructions, to use reasonable diligence care and skill, to act in person, to act in the principles interests and not to disclose confidential information. The final element of the duty is to keep the principles money separate, to keep accounts and be ready to account for those monies were required. If an agent agrees to make a contract principle and is not make the contract they agreed, there is a breach of the contract between the principle and the agent and the agent may be liable in damages to principle.
Perhaps the most important and controversial area in relations to the agents duties is their duty to use due care, skill and diligence. An agent is under a duty to carry out its agency with these characteristics which arises from an implied term of the principle and agent contract. Also, the ever evolving law of negligence has a bearing on the situation and the warranties of due care and skill and fitness for purpose in relation to the supply of services implied by the trade practices legislation in Australia and unfair trading equivalence in the state jurisdictions in Australia. The standard expected of what is reasonable for an agent is defined in terms of a reasonable effort in the case of free services and means a professional standard of paid services. The agent may be legally liable Freni failings, shortcomings or mistakes. An agent will not be liable in negligence if they have verify the correctness of information or advice or if the agent is checked information with the principle. In agent it is not have the relevant information should disclose this fact to the principle and may avoid liability by honestly explaining limits of their knowledge. If you are in any way involved in a principle agency relationship in your business, it is certainly important to understand this principles of law so that you can apply them to your business relationships.
