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First Principles of Business Law |
| The law of agency |
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5. An agent's duties to their principal |
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5.5. The duty to keep proper accounts |
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Read the facts below, and then answer the questions. A, a businessman, appoints B as his agent to collect unpaid debts from clients. He agrees to pay B a fee of 10 per cent of all moneys successfully obtained by B on behalf of A. B works from her own office, sending out letters of demand and receiving payments on behalf of A. When B receives cash or cheques from debtors, she enters the payment in her records, and banks the money in her own bank account. From time to time she pays the accumulated total to A after deducting the commission she has earned. |
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1. A says that he is entitled to receive an account from B, explaining what money she has received and what she has done with it. Is he correct? 2. A says that B should not pay the money she has received as his agent into her own bank account. Is he correct? |
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