Law of Business Organisations Assignment
[pic 1][pic 2][pic 3][pic 4]LAW OF BUSINESS ORGANISATIONS ASSIGNMENTName: BrunoStudent number: 13095173Course: CO5121-Law Of Business Organisations-Sp23-15Word count: 2003PART A: THREE SHORT ANSWER QUESTIONSAgencyAn Agent carries a range of duties that are implicit with every agency. Select any three (3) of these duties and provide examples where and how they might operate. A discussion of any case law to particular duties should be included.(Q1 = 6 marks)The role of an agent is that implement the rights and obligation arising from the transactions of principal and representing principal enter into a contract with a third party. [1]The scopes of Agent’s duties include:Exercising due care, skill and attention An Agent has to exercise his/her duties with care, skill and attention under the contract between his/her and the principal [2].This can be included both implied term and expressed term in the contract that required the agent should act timely to deal with implied term from his/her agreement.For example: “Real estate agents who mission is to see that at least one fully considered unacceptable without consultation as the value” [3]. This does not mean that one agency would be responsible for a small difference between the sale price and the current market value. However, with a big difference, the agent would recommend to the current market value.
The agent will be responsible about the different offer’s prices and loss of commission for providing the difference among the prices that offer to buyers during exchanging contracts.[4]Not making a secret profit.Some agents take bribes when they make an obligation. Therefore, they may be responsible the terms of bribes and commissions to be paid relating to the transaction with the principal.[5]For exampleAn agent is not allowed to receive bride from third party to give them more advantage in a transaction between them and the principal. The agent can keep that as a legal fee but they must inform to the principal. Acting in good faith, i.e. in the best interests of the Principal;Agents must improve loyalty to the interests of the business; not to use the information, know-how, business opportunities of the business, not to abuse their position, and use of principal’s assets for personal gain or for the benefit of other individuals.[6]For exampleThe principal allow for dealer come and take care the principal’s house at weekend, the agent can use this house for his friend to have a party. The agent used the principal’s assets for his personal gain. As a result, that action breaks the scope of agent’s loyalty with the principal.