Agent: duties to principal

Updated: Aug 20, 2021

These are generally a matter of common sense, but in particular an agent must: (1) observe the agency agreement; (2) follow his principal’s instructions when not illegal; (3) always act in the interest of his principal; (4) use the skill that he is supposed to have; (5) not in any way compete with his principal or take on any other work which competes with his duties to his principal; (6) respect the confidence of his principal, even after the end of the agency; (7) not make any secret profit or take a bribe; (8) compensate his principal for any loss arising from breach of duty; (9) account properly to his principal.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.