LAW OF AGENCY

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LAW OF AGENCY

• HOSPITALITY LAW

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Duties of the Agent

• 1. Exercise reasonable care in performing the
  duties
• 2. Cannot delegate tasks
• 3. Element of Trust
• 4. Must not allow their personal interests to
  conflict with those of the principal

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Duties of the Agent

• 5. Account to the principal for all money
  received.
• 6. Should keep the money received on behalf of
  the principal, separate from their own
• 7. Account any incidental advantage.

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Rights of the Agent

• 1. Entitled to the payment
• 2. Reimbursed by the principal for all the
  expenses and liabilities incurred in the due
  performance of the contract.

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Liability towards third parties

• 1. If the identity of the principal is disclosed
  Principal is responsible
• 2. If the identity of the principal is not
  disclosed Agent is responsible
• 3. In case of ostensible authority Both of them
  are responsible but the case can only be brought
  against one of them. If the case is brought
  against the hotel, the hotel may bring a counter
  claim action against the agent

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Liability towards third persons

• 4. If there is no authority If the principal
  ratifies the transaction Principal is liable.
• If there is no ratification Agent is liable.