(a). Right of an agent:

• Right to Remuneration or Commission: Unless the terms of agency state otherwise, the agent is entitled to commission (remuneration). An agent’s remuneration is based on the terms of his agency agreement.
• Right to indemnity: The principal must pay for any loss or liability and also reimburse all expenses lawfully incurred in the execution of duties unless the agency contract states otherwise.
• Right to exercise lien: An agent is entitled to retain possession of goods until remuneration, debt, or other obligations owed him by the principal have been settled.

Obligation of an agent:

• To act in accordance with the principal’s lawful instructions (not act ultra vires).
• To exercise due diligence in the performance of his duties.
• To keep proper accounts and to render an account when required to do so.
• The agent must act in good faith.
• The agent must not make any “secret profit”.
• The agent must not delegate his authority to another person.

Right of a principal:

• Sue for damages if the agent fails to act according to the terms of contract.
• Sue for damages for negligence.
• Sue for ‘secret profit’ or bribes obtained by the agent in discharging his/her duties.

Duties of a principal:

• To pay commission or remuneration to his agent.
• To indemnify the agent.
• To give precise instructions.

(b). Candidate is to state and explain ways by which contracts can be terminated with relevant cases:

• Agreement
• Operation of law (death, insanity, insolvency)

(c). General Agents have authority to act for their principals in all matters connected with a particular trade or business. A general agent has implied power to bind his principal in all matters of ordinary business in the enterprise of the relationship. In Watteau v Fenwick (1893) 1 QB 346.

• Special Agents are appointed to act in respect of a particular transaction or a series of transactions and usually have only limited powers or authority.
• Agent by necessity occurs where in emergency situations; a person is compelled to act in order to protect the property or interest of another. Springer v Great Western Railway Company (1921) 1 KB 257.