Law Of Agency Essay Example | Topics and Well Written Essays - 2500 words

Law Of Agency - Essay Example Principals by placing fresh orders with Papa Dog. Thus, she is personally liable for her actions and not her principals. Although initially she had remonstrated with Josh, regarding the defect in product K10, later she confirmed order for  £600 without seeking permission from her principals. This action has made her liable under law of criminal tort and negligence. The next feature that needs to be seen is that under the law of agency, it is illegal for an agent to make secret profits out of actions arising out of agency business. Even if she did she would be liable to disclose the same to the principal and act according to their instructions. However, this was also not done, making her an ideal candidate for tort, criminal action under agency laws and fraudulent conduct. â€Å"Agents have certain duties to their principals. This could be in terms of performing the legal duties as embodied in covenant and adhering to â€Å"standards of reasonable care, skills and diligence implicit in all contracts.† (Chapter 19: Agent Duties to Principal, #13). Again agents have a major duty to reveal to the principal information gathered from outside sources regarding matters relevant to business â€Å"that is important to the principals.† (Chapter 19: Agent Duties to Principal, #13). â€Å"The duty of loyalty† in terms of not working in cross purposes or detrimental to the interests of the principal is also sacrosanct for the agent. .† (Chapter 19: Agent Duties continued, #14). Again the duty of obedience entails that agent would have to honour the legal and ethical guidelines offered by the principal â€Å"during the performance of the agency.† (Chapter 19: Agent Duties continued, #14). In the case of Alwood v. Clifford (2002) EMCR -3, the lady, Alwood was expecting eight children, and she hired the services of Clifford, for arranging for leading newspaper to cover the rare event. Clifford