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Which one of the following is not a duty of an agent?
- a)Duty to exercise care and skill.
- b)Duty to take a commission.
- c)Duty to account.
- d)Duty to avoid a conflict of interest
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which one of the following is not a duty of an agent?a)Duty to exercis...
Agents have a number of duties but they do not have a duty to take a commission.
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Which one of the following is not a duty of an agent?a)Duty to exercis...
Understanding the Duties of an Agent
In agency law, an agent has several important duties towards the principal. Among the options provided, the duty to take a commission is not a mandatory obligation of an agent. Here’s a breakdown of why option 'B' is the correct answer.
Duty to Exercise Care and Skill
- An agent is required to perform their tasks with a reasonable level of care and skill.
- This duty ensures that the agent acts in the best interest of the principal, utilizing their expertise effectively.
Duty to Take a Commission
- Unlike the other duties, taking a commission is not a compulsory duty.
- An agent may or may not receive a commission based on the agreement with the principal.
- If the principal does not agree to pay a commission, the agent is still bound to fulfill their duties.
Duty to Account
- Agents have a duty to provide an accurate accounting of all transactions and funds handled on behalf of the principal.
- This transparency is crucial for maintaining trust and ensuring proper management of the principal's assets.
Duty to Avoid a Conflict of Interest
- Agents must act in good faith and avoid situations that could lead to a conflict of interest.
- This means prioritizing the principal's interests above their own or any third party's.
Conclusion
In summary, while agents have several critical duties, the obligation to take a commission is not one of them, making option 'B' the correct answer. Understanding these duties is essential for both agents and principals to maintain a healthy and effective working relationship.
In agency law, an agent has several important duties towards the principal. Among the options provided, the duty to take a commission is not a mandatory obligation of an agent. Here’s a breakdown of why option 'B' is the correct answer.
Duty to Exercise Care and Skill
- An agent is required to perform their tasks with a reasonable level of care and skill.
- This duty ensures that the agent acts in the best interest of the principal, utilizing their expertise effectively.
Duty to Take a Commission
- Unlike the other duties, taking a commission is not a compulsory duty.
- An agent may or may not receive a commission based on the agreement with the principal.
- If the principal does not agree to pay a commission, the agent is still bound to fulfill their duties.
Duty to Account
- Agents have a duty to provide an accurate accounting of all transactions and funds handled on behalf of the principal.
- This transparency is crucial for maintaining trust and ensuring proper management of the principal's assets.
Duty to Avoid a Conflict of Interest
- Agents must act in good faith and avoid situations that could lead to a conflict of interest.
- This means prioritizing the principal's interests above their own or any third party's.
Conclusion
In summary, while agents have several critical duties, the obligation to take a commission is not one of them, making option 'B' the correct answer. Understanding these duties is essential for both agents and principals to maintain a healthy and effective working relationship.
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Which one of the following is not a duty of an agent?a)Duty to exercise care and skill.b)Duty to take a commission.c)Duty to account.d)Duty to avoid a conflict of interestCorrect answer is option 'B'. Can you explain this answer?
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