An agent should not make secret profit out of his agency except his remuneration.
Describe five consequences of breach of this duty
Consequences of receiving a secret profit by an agent:-
- The agent will be forced to refund the secret profit to the principal. He will lose his right to commission/remuneration.
- The principal can repudiate the contract with the third party.
- He can summarily dismiss the agent without notice.
- He can sue the agent for damages.
- Cancel the contract.