Please provide answers and dis

Please provide answers and discussion on all of thefollowing:

  • List three principleduties of the agent to the principal and explain why they areimportant.
  • How can you have a validenforceable contract and have it become unenforceable? Rememberthat an oral contract for sale of real estate is not a validenforceable contract because your text is specific that such acontract appears to be valid but is not in court! That also meansyour answer won’t include discussion of real estate brokerspracticing law, or parties too young, or coerced or incompetent andso on! The contract in this question is perfect because I say itis!


Que: Three principle duties of an agent to the principle:

A)Duty of Care: The agent must exercise due diligence in runningthe business of principle. He should make sound decisions that arein the long-term interest of business.

B)Duty of Loyalty: The agent should demonstrate unyieldingloyalty toward his principle. He should not disclose the secretinformation to any third party as well as does not make any secretprofit from the business of his principle

C)Duty to Render Accounts: The agent should properly maintainthe accounts of principle’s business and regularly communicate thesame to principle. He should ensure that the information representsthe true and fair view of the state of affairs of business.

These duties are essential for the survival and growth of thebusiness of principle. If the agent doesn’t run the business withdue diligence and care, make a secret profit or discloseconfidential information to the third party and present thefalsified accounts to principle, it would result into losses andfailure in the long run. Failure of business is neither in theinterest of principle nor agent, as the agent will lose employmentand the principal his capital.

Que: How can a valid enforceable contract can becomeunenforceable:

A valid contract enforceable at law can become unenforceablelater on due to the impossibility of performance of the contract.For examples:

a) Mr. Z, who is a painter, agree to make a painting of Miss Y.But after few days, Z is paralyzed. Here, the contract becomes voiddue to the impossibility of performance of the contract.

b) Mr. Z resident of South Korea enters into a contract with Mr.X resident of North Korea to supply 10-tonne wheat after 2 months.Before the completion of the period of two months, war breaks outbetween South and North Korea. As the result, Government of SouthKorea declares all trade with North Korea illegal. Here, thecontract between Mr. X and Mr. Z become void due to theimpossibility of performance of the contract.

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