Question 7
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State four rights of an unpaid seller of goods.
- Outline six duties of an agent to his principal.
Observation
The question was also avoided by most candidates. Those who attempted the question outlined the duties of a sales representative as against that of an agent as required by the question in (b).
The expected responses to the question include:
(a) Rights of an unpaid seller of goods
- Right to retain possession of goods until the price is paid.
- Right to sue for non-payment of price of goods.
- Right to sue for damages for non-acceptance of goods.
- Right to resell the goods.
- Right to stop the goods on transit if buyer becomes insolvent.
(b) Duties of an agent to his principal
- He is to obey and carry out lawful instructions.
- He is to demonstrate diligence and skill in the performance of his duties.
- He is to act honestly and in due faith for the benefit of the principal.
- He is to perform tasks personally and not delegate them.
- He is to render account of his activities to his principal.
- He should not divulge his principal’s confidential information.
- He should not compete with his principal in similar activities or make secret gains.