Chapter- 8 Contracts Relating to Agency

Section 59 : Matters to be complied with by agent

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1) Except when otherwise provided for in the contract, an agent shall comply with the following matters:

(a) Work subject to the conditions of the contract relating to the agency and the directives issued by the principal person.

(b) In case no condition has been mentioned in the contract or the principal person has issued no directive, the agent shall work as entrusted to him/her in the manner in which it has to be performed according to the nature of the trade and business and the laws and practices of the place of transaction, with bona fide motive, full dedication and necessary skills and efficiency.

Provided that in case the principal person has knowledge in advance that the agent has knowledge in advance that the agent has no skill or capability with respect to any subject, the agent shall not be responsible for any loss or damage resulting from such lack of skill or capability.

(c) An agent who has been removed from his/her position shall not do anything on the same subject as before in the capacity of an agent.

(d) The agent shall supply or show details of the account and record relating to the agency business when demanded by the principal person.

(e) In case any obstruction, obstacle or difficulty arises in the course of performing work relating to the agency, the agent shall notify the principal person as soon as possible and obtain necessary directives, and the principal person shall him/herself be responsible for any action taken according to the directives so issue.

2) In case the principal person suffers any loss or damage because of the failure of the agent to fulfil his/her duties under Clause (a), (b) and (c), the agent shall personally bear loss or damage so incurred.

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