1. He should act according to the directions of the principal and in default, indemnify the principal for the loss, if any
  2. 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.

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  1. In case of difficulty, he must be diligent in communicating with the principal and obtaining his instruction.
  2. 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.

  1. He must render proper accounts on demand.
  2. He must not delegate his authority without the consent of the principal.
  3. He must deliver all monies including secret commission, to the principal. He can deduct his remuneration and other lawful expenses spent by him.
  4. He should not set up his own title or title of third parties to the goods of the principal in hi hands.
  5. 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.

  1. He should not disclose confidential information.
  2. His interest should not conflict with his duty.
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