ACCA LW ^Eng Syllabus D. The Formation And Constitution Of Business Organisations - Explain The Potential Liability Of Both Principal And Agent - Notes ^{4 / 4}

This is as long as he performs his duties... which are:

(a) To perform their duties in line with the instructions of the principal
(b) To exercise due care and skill
(c) To act in person
(d) To be accountable for all transactions
(e) To avoid a conflict of interests
(f) Not to make a secret profit
(g) Not to accept bribes

However, the agent is liable when..

1. The agent has signed the contract in their own name (without reference to their role as an agent)

2. The agent has admitted liability

3. The agent acts outside their authority

4. In relation with bills of exchange and deeds

5. No principal actually exists

An agent acting with no actual or apparent authority is liable and so has personal responsibility for the contracts he/she entered into