Usual Authorithy

When a agent carries on a particular trade or profession,his express and implied authorithy carry with them a usual authorithy.

Such authorithy enables him to perform acts which are usual in the particular trade or profession.On the other hand,if there are certain customs of a trade,he has actual authorithy to comply with such customs.Examples of usual authorithy may be given as follows:

• An investment manager with intructions to sell has a usual authorithy to sign a memorandum of the contract of sale on behalf of the vendor.
• A property agent who has authorithy to sign a contract on behalf of the owner.

Obligations Of The Priciples

The principles has always the following duties towards his agents:

• To pay remuneration and expenses as agreed;or failing agreement,as customary;or failing a custom,to pay what what is reasonable.
• Indemnify the against consequences of any act lawfully done,within his authority,on behalf of principal.

Authority Of An Insurance Agent

An agent can act only within the authority granted to him by the principal.The authority given to an agent maybe expressed,implied or apparent.It is also to know about the usual authority of the agent and related ratification thereof.

Authority as below -

1. Express Authority
   
2. Implied Authority
   
3. Apparent Or Ostensible Authority
   
4. Ratification
   

For more details see the next post...

Rights Of And Insurance Agents

The Agent's most important right is the right to receive payment for his services,usually in the form of commission.

The agent is also entitled to reimbursement of moneys which he has expended with express authorithy of his principal .However ,such expense has to be reasonable and within acceptable limits.

The agent has the right to perform his duties in the manner which he considers to be appropriate.He may be reject any attempt by his principal to control the manner in which he works.

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