• A transport operator may appoint another person to act as an agent.
• Entering an agency agreement has significant legal consequences, so the arrangement and its limits should be clearly understood.

9.1 DEFINITION OF AN AGENT

• An agent is a person authorised to act on behalf of another person, the principal, to establish contractual relationships with a third party.
• The essence of agency is the agent's power to make contracts that are legally binding on the principal.
• An agent is entitled to a commission for contract-making duties.
• The agency agreement should clearly state the agent's authority and limits.
• The principal is bound by contracts made by the agent while the agent acts within the authorised limits.
• If the agent goes outside those limits, the principal is not bound by the contract with the third party.
• An agent acting outside authority may personally face a claim for breach of contract from the third party.
• Example from the training material: an agent authorised only to arrange return-load contracts would not have authority to sell one of the operator's vehicles.

9.2 DUTIES OF AN AGENT

• Exercise care:
• The agent must exercise due care.
• A paid agent must exercise the skill the agent claims to possess.
• No sub-delegation:
• The agent should normally perform the agency personally.
• Sub-delegation is only possible where the principal has agreed to it.
• No conflict of interest:
• The agent must not allow personal interests to conflict with duties to the principal.
• An agent authorised to sell something must not buy it personally unless the principal specifically agrees.
• No secret profits:
• The agent must not make secret profits from the agency transaction or take bribes.
• Any extra profit resulting from the agency must be disclosed to the principal.
• If secret profits are discovered, the principal can sue the agent for repayment of the extra profits.