case 31-3 - off but instead of this he sell items for 15...

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Case 31-3: Issue: Agent Ankir is caught by making some benefits for himself. Under agency relationship what are the rights of principal in this situation? Rule: under the agency relationship between agent and principal if agent works for his benefits rather than his principle then the agency laws give rights to the principle to cover his situation. He can use the right for constructive trust, avoidance or indemnification. This rule is on page number 649. Application: The main purpose of agency relationship is to work for the benefit of the principle and if the agent fails to do so, like in this case Ankir suppose to sell the goods with 20%
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Unformatted text preview: off but instead of this he sell items for 15% off and pocketing the 5% for himself without losing any customer and popularity in the company. Eventually Jamison found this; he can either call off the contract under avoidance or getting indemnified by his agent actions. Conclusion: I think he should use the indemnify clause so that he can recover his losses and give the agent another chance since he is the most popular sales person in the team....
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