The agency relationship between an agent is in principle based on a contract between them and is a fiduciary relationship. An agent’s duties in principle are to follow the instructions of the principles, use reasonable diligence and skill, act personally, act in the interest of the principles, and not disclose confidential information. The final element of duty is to keep principle money separate, keep accounts, and be ready to account for those monies that are required. If a principal agrees to make a contract in principle and the contract they agreed to is not made, there is a breach of contract between the principal and the principal and the principal may be liable for damages to the principal.

Perhaps the most important and controversial area regarding the duties of agents is their duty to use due care, skill, and diligence. An agent has the duty to carry out his mandate with these characteristics that are derived from an implicit term of the agent and agent contract. In addition, the ever-evolving negligence law influences the status and safeguards of due care and skill and fitness for purpose in relation to the supply of services implied by trade practices legislation in Australia and unfair trade equivalence in jurisdictions. state in Australia. The expected standard of what is reasonable for an agent is defined in terms of reasonable effort in the case of free services and means a professional standard of paid services. The Freni agent may be legally responsible for failures, deficiencies or errors. An agent will not be liable for negligence if she has verified the accuracy of the information or advice or if the agent has verified the information with principle. In the event that the agent does not have the relevant information, she should disclose this fact at the outset and can avoid liability by honestly explaining the limits of her knowledge. If you are involved in any way in a principal agency relationship in your business, it is certainly important to understand these legal principles so that you can apply them to your business relationships.