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8 Legal Relations between Principal and Agent: Duties the Agent Owes to His Principal

From: Agency: Law and Principles (4th Edition)

Roderick Munday

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2022. All Rights Reserved.date: 08 August 2022

Subject(s):
Agent's duties and liabilities — Breach of warranty of authority — Principal’s liabilities — Applicable law

This chapter considers the agent as both a contracting party and a fiduciary that owes strict equitable obligations to the principal arising out of the special position of trust in which the law of agency places him. It cites Turpin v Bilton, where an agent breached his principal’s instructions to arrange insurance for the ship. It also highlights an agent’s authority that will be governed by the exact terms of the agreement with the principal. The chapter explains how the agent cannot be expected to carry out instructions that would be null and void at common law or under statute. It discusses Ireland v Livingston, wherein an agent who will not be held liable to his principal for breach of their contract of agency.

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