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Word Count: 753
Identify the area or areas of law The area of law concerns this case which in connection with the Agency especially duties rights and liabilities of an agent Explain the principles of law Apparent or Ostensible Authority Where an agent is engaged to sell property it will normally fall within the scope of the agents ostensible authority to describe the nature and quality of the property that heshe is selling on behalf of the principal Accordingly if the agents representations are untrue the vendor will be liable to the purchaser for the less suffered by the purchaser as a result of relying on the untrue representations Aliotta v Broadmeadows Bus Service Ltd 1988 ATPR 40 - 873 Right to Indemnity and Reimbursement Every agent is entitled to be indemnified against all losses and liabilities At the same time they are also entitled to be reimbursed for all expense lawfully incurred whilst carrying out the instructions of the principal It is important to consider the word lawfully in this context because if the agent has acted outside the scope of hisher authority or engaged in an unlawful act or suffered loss through hisher own negligence or default then the agent would have no claim for reimbursement Liability to Principal Generally the agent incurs no liability against the principal with regard to the contract Where an agent however disobeys the instructions of the principal such an agent will be liable for any loss suffered by the principal as a result of the breach of the agency agreement Furthermore where the agent does not carry out the instructions of the principal the agent will be liable to make good the damage suffered by the principal as a consequence of the agents negligence Mitor Investments Pty Ltd v General Accident Fire Life Assurance Corp 1984 WAR 365 Liability to Third Parties Where the agent discloses the name of the principal the contract is deemed to be that
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