Principal-agent Agreement and Tort Warranty Theories Assignment

Principal-agent Agreement and Tort Warranty Theories - Assignment Example The law implies certain responsibilities to the principal. Agents cannot avoid their duties and responsibilities that they have been assigned to by the principal by delegating or assigning to the other party. The relationship is highly personal by nature, and therefore non-delegable in that it cannot be performed by any other than the agent selected. An agent is supposed to obey all the lawful and reasonable instructions assigned to him by the principal in the performance of the agency. If losses occur to the principal due to an act committed by the agent acting more than its authority, the agent shall remain liable to those losses. In the relationship, the urgent is appointed by the principal and is working for the principal. Therefore agents must remain diligent, faithful, and loyal to their employers, and act in an ethical manner, and in the most professional way putting forth their best interests and efforts towards achieving their principal objectives. The agent must act with reasonable care and poses the skills required to perform such duties. Agents must have reasonable judgments in rendering the service and in advertisements. Agents hold themselves to the public as possessing skills and certain abilities and that have a duty to perform with full competence. In addition, agents cannot escape responsibility due to lack of ability, negligence or pleading ignorance, and therefore they should keep informed of legal developments, economic, and social developments in their fields of expertise Principals have several duties to the agents in their relationships such as fulfilling the obligations set forth in the agreements, paying the agents like indemnifying the agents for liabilities incurred in carrying out the agency duties and for reasonable expenses.