Section 594: Matters to be complied with by agent

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

(a) To act subject to the terms and conditions of the contract of agency and the directions given by the principal,

(b) In the absence of any terms and conditions in the contract or any direction given by the principal, to do the business of agency in good faith, with full diligence and necessary care and skill, in accordance with the nature of the act and business assigned to him or her and the laws and usages of the place of transaction,

Provided that if, at the time of the conclusion of the contract, the principal was aware that the agent had no efficiency or capacity in relation to any matter, the agent shall not be liable for any loss or damage resulting from such inefficiency or incapacity of him or her.

(c) On the removal from an agent, not to do any act as usual in the capacity of an agent on the same business.

(d) To render or show the details of accounts and records of the agency business to the principal at the time of demand,

(e) In the case of any obstruction, obstacle, or difficulty arising in the course of business of the agency, the agency shall notify the principal as soon as possible and obtain necessary directions, and the principal shall be liable for any act done according to the direction so given.

2) If the principal suffers any loss or damage because of the failure of the agent to perform his or her duties under clauses (a), (b), and (c) of sub-section (1), the agent shall personally bear such loss or damage.

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Section 594: Matters to be complied with by agent

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