- He should act according to the directions of the principal and in default, indemnify the principal for the loss, if any
- In the absence of instructions, he must act according to the trade custom.
Illustration: A, an agent engaged in carrying on for B, a business, in which it is the custom, to invest from time to time, at interest the monies which may be in hand, omits to make such investment. A, must make good to B the interest usually obtained by such investment.
- In case of difficulty, he must be diligent in communicating with the principal and obtaining his instruction.
- He must conduct the business of agency with as much skill as is generally possessed by persons engaged in similar business, unless the principal has notice of want of skill.
Illustration: A, having authority to sell on credit, sells goods to B without enquiring about his solvency, B at the time of sale, is bankrupt. A must make good the loss.
- He must render proper accounts on demand.
- He must not delegate his authority without the consent of the principal.
- He must deliver all monies including secret commission, to the principal. He can deduct his remuneration and other lawful expenses spent by him.
- He should not set up his own title or title of third parties to the goods of the principal in hi hands.
- If, by the nature of profession, an agent is purported to have special skill, he must exercise that degree of skill ordinarily expected from the members of the profession.
Illustration: A solicitor, who started the proceedings under a wrong section or field a suit in a court having no jurisdiction, is liable.
- He should not disclose confidential information.
- His interest should not conflict with his duty.