Consequences of receiving a secret profit by an agent in contract of agency

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.



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