Question

(a) What are the duties of Agent?

(b) Peter would like to sell his property in New Territories. He visits the office of Good Property Agent Limited and meets Wendy who is a real estate agent. Wendy informs Peter that the property is worth HK$8 million. Peter asks Wendy to put it up for sale at that price. However, the property in his area suddenly rises because of good news of building the MTR line in future. At the same time, Wendy buys the property in her son’s name and arranges payment of HK$8 million to Peter. Advise Peter and Wendy.
Please use simple english to answer the question
please use bullet points
please use cite 3 precedent while answering (old cases) to support your answer

Answer 1

Wendy, as a real estate agent, had a duty to act in Peter's best interests, which she violated by purchasing the property in her son's name after learning of its potential value increase. This is a breach of the duty of loyalty implying Peter has a cause for legal action.

Step-by-step explanation:

When considering the duties of an agent, certain legal precedents must be taken into account. An agent has the responsibility to act in the best interest of the principal, maintain a duty of loyalty, and avoid any conflicts of interest. Here's a look at Peter and Wendy's situation with reference to real estate agency duties and ethical standards:

• Agent's Duties: These generally include acting within the scope of authority given by the principal, representing the principal's interests faithfully, and disclosing material facts.
• In Wendy's situation, buying the property in her son's name after knowing about the rise in property prices implies a breach of the duty of loyalty to Peter.
• Precedent cases like Keppel v Wheeler (1927), Lister & Co. v Stubbs (1890), and Andrews v Ramsay (1903) showcase the importance of an agent not putting personal interests above those of the principal.

Peter may seek legal recourse for Wendy's actions, as she violated her fiduciary duty by benefiting from information that she had obtained as his agent. She should have informed Peter about the potential increase in property value and sought his decision before acting in a way that could benefit her personally.