First Principles of Business Law

5. An agent's duties to their principal

5.2. The duty to carry out instructions

Read the facts below, and then answer the questions.

A employs B as his agent, instructing B to look after the block of apartments owned by A, and to organise whatever repair or maintenance work is necessary from time to time. In particular, A says that B must organise to have the outside of the building painted every three years. Three years after the last painting, B inspects the building and forms the opinion that the paintwork is still in good condition, and will not require re-doing for another year at least. This will save A a considerable sum of money.

1. In these circumstances, is B entitled to use his discretion and delay painting the building for a year?

2. If a principal's instructions are not clear, or are ambiguous, does the agent have the right to decide what to do?