ACCA Applied Skills · Corporate and Business Law (Global) · Agency law
Nadia appoints Omar as her agent to sell her vintage car for her. Omar is paid a fixed fee for the sale. Which of the following is a duty that Omar, as agent, owes to Nadia?
Omar must perform the task personally unless delegation is permitted by the agreement, by trade custom or by necessity. He does not guarantee the buyer's payment, and any secret profit belongs to Nadia, so keeping it would breach his fiduciary duty.
- ATo perform his authorised task personally, unless delegation is permitted by the agreement, by custom or by necessityCorrect
- BTo guarantee that the buyer will pay the price on time
- CTo keep any extra profit he makes on the sale above the fee, as long as the sale is lawful
Explanation
An agent must generally perform the task personally, because the principal chose that agent (delegatus non potest delegare), unless delegation is allowed. An agent does not guarantee the third party's performance unless he agrees to do so. A secret profit must be handed over to the principal, so the third option is wrong.
Did you get it right without looking?
One question tells you little. A timed set on Agency law shows your real accuracy, how long you take and where you lose marks.
More Agency law questions
- Sunita, an agent, is engaged by Harbour Ltd to sell its goods for an agreed commission. Harbour Ltd's directors, after Sunita has found a bu…
- Farid, an agent for Gala Ltd, was told to stop dealing with Hanif Co, a long-standing customer. Gala Ltd did not tell Hanif Co of this. Fari…
- Hana acts as agent for Verdant Ltd, which instructs her to buy raw materials. She incurs legitimate expenses of $2,000 while acting within h…
- A shipping company's cargo of perishable fruit is stranded at a port after the owner cannot be contacted. Tomas, the ship's master, sells th…
- Orbit Ltd appoints Priya, a professional auctioneer, to sell a consignment of goods. She is authorised to deal only with a single, specific …
- Delmar Ltd employs Oksana as its sales manager. Without any express instruction, she regularly signs ordinary supply contracts for Delmar, a…