Q&As

Where A (truthfully but without authority and not having been instructed in relation to the sale) tells B that C's property is for sale and the effect of that communication results in diminution of the value of the property, what cause(s) of action might C have against A? For the purposes of this Q&A, we have assumed that A is C's agent.

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Published on LexisPSL on 12/08/2016

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Where A (truthfully but without authority and not having been instructed in relation to the sale) tells B that C's property is for sale and the effect of that communication results in diminution of the value of the property, what cause(s) of action might C have against A? For the purposes of this Q&A, we have assumed that A is C's agent.
  • What duties does an agent owe to their principal?
  • Agents and third parties

What duties does an agent owe to their principal?

See Practice Note: Nature and types of agency for general guidance on the different types of agency and how they may arise.

Practice Note: Relationship of principal and agent provides that the rights and duties as between agent and principal are usually set out in the terms of any written document entered into to establish their agency relationship, but that additional rights and duties may be implied by law, depending on the circumstances of each relationship.

Therefore the majority of the specific duties the agent owes their principal will be specifically set out in their agreement (if one has been concluded). Any deviation from those duties may amount to a breach of contract for which the usual causes of action and remedies would lie (see below).

In addition, the common law imposes a number of duties on an agent in their capacity as their principal’s fiduciary. For further details of an agent’s fiduciary details, see Practice Note: Fiduciary duties. One of the key duties imposed on a fiduciary is that of confidentiality in relat

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