ACCA Applied Skills · Corporate and Business Law (Global) · Agency law
Marta appoints Joel as her agent to sell her antique furniture. Joel agrees to act without any payment. Which statement about Joel's duties to Marta is correct?
Joel must exercise reasonable care and skill. An agent's duties, including care, obedience and avoiding secret profits, arise from the agency relationship, not from payment, so acting without remuneration does not remove them.
- AJoel owes no duties to Marta because he receives no remuneration
- BJoel must perform the task with reasonable care and skill despite acting without paymentCorrect
- CJoel may delegate the task to anyone he chooses without Marta's consent
- DJoel may keep any profit he makes from the sale provided Marta receives the asking price
Explanation
An agent owes duties of care and skill, obedience, and good faith, and the duty of care applies even to a gratuitous agent. Option A is wrong because duties do not depend on payment. Option D breaches the duty not to make secret profits.
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