THE AGENT

New Zealand Times, Volume XLVII, Issue 10966, 30 July 1921, Page 6

THE AGENT

HIS USE IN COMMERCE “INTEGRITY, SKILL AND DILIGENCE NEEDED.”. MR JUSTICE HOSKIXG’S LECTURE Tho functions, responsibilities and general purposes of that übiquitous person, the agent, were reviewed in a very interesting lecture delivered to tlie Accountant Students’ Society last night by Air Justice Hosking, who is a recognised authority on mercantile law. There was a very good attendance of members.

“It is a maxim of law,” said His Honour, “that what a man may himself do, he may do by the agency of another.” Its application is seen in every variety of business. Without the relation of agency, business could not develop beyond that of the simplest and most elementary character, and a. man’s transactions would be confined to such knowledge as could lie accomplished by himself in person. - But, by its aid, n merchant becomes a hundred-handed, and can do business at all times, and in all quarters of the globe. He buys from a London buyer; establishes credit with his banker; the banker instructs his correspondent; the buyer engages freight; an insurance broker underwrites the risk; a dock company delivers to the captain of the ship; the wharfinger receives the goods; a Customs agency passes the necessary entries; and finally a carter brings the goods to the merchant’s store.” TYPES OE AGENT. There are various types of agent, said tho lecturer, distinguished not so much hy the subjects in which' they do business as by the special legal relationship which they occupy with regard to their transactions, on behalf of the principal. There are, for example, factors, or that mercantile designation, but not in common use ;fi New Zealand. Ho sells goods for another, having in his own hands either the goods or the bond wan ants, bein r to the Outside world , the owner. He can hold himself out as the principal. The broker is authorised to sell without having the goods in his hands. He does not sell in his own name, although he binds the principal. The auctioneer may or may not have in his hands the goods, aud is recognised as having power at an auction to bind the vendor and, the buyer. The del credere agent, whp; whether factor or broker, guarantees Ills principal that the opposite party will perform the contract, so that* if a buyer does rot* buy, he, the agent, will. He expects pay at a higher percentage than the broker, who undertakes no such responsibility. Then there are classes of agents, such as sharebrokers, stockbrokers, who add the sale and the purchase of debentures and other securities to their undertakings ; ship brokers, who arrange charters ; stock agents, whose speciality is live stock; hotel brokers, whose.function is to buy a;nd sell hotels; house agents,' and that numerous body, land agents. All may without impropriety bo called commission in the sense that their function is to bring buyer and seller together, and who receive payment by percentage of the amount involved in the transaction. No license to trade is required, except by auctioneers, sharebrokers, and land agents. “PRESERVATION OF MONOPOLY.” As to sharebrokers, the Minister for Stamp Duties is requisite to entitle them to oarry on business, under* the Sharebrokers’ Act, 1908. The monopoly of the brokers is guarded by a fine of £IOO, imposed on a person who acts aa a sharebroker without a license. Land agents are governed by the Land Agents Act, 1912. Fifty pounds is considered sufficient -penalty to preserve their monopoly. The Act makes important provisions as to the manner in which they must deal with any sale moneys they receive, and on the subject of their remuneration. It is not generally necessary feu* the creation of an agency, in the nature of factor, broker, or auctioneer, that the appointment should be in writing, but, in tbe case of land sale, if the agent desires to be legally able to recover his commission, lie must show a written authority or appointment of himself, signed by his principal. AGENT’S QUALIFICATIONS.

The lecturer proceeded to define tlie chief qualifications of a reputable agent as integrity, diligence and skill. As to the first, the requirement® of the law demanded that his duty shall not conflict with his interest. He was nob •allowed to take any interest in his principal’® -property unless he had fully disclosed the position of the principal, and obtained his expressed or implied consent. His Honour quoted tbe famous Rothfcchild investment case, and the dictum of the learned judge on tlie policy of the law of England, in regard to a principal supplying his own shares to his client. The taking of bribes, or secret payments from the opposite party, the retention of discounts, which an agent may receive in respect of account® which he pay- for his principal, and the penalties imposed under the Secret Commissions Act. 1910, were dealt with under the head of integrity. PROTECTING THE PRINCIPAL.

Skill, in an agency business, was no more than what was ordinarily possessed and employed by persons of common capacity in the same trade, business or employment. Ordinary diligence was the degree of diligence exercised by persons of common prudence about their own business and affairs. The agent must follow out and obey instructions, he as bound to act in accordance with the ordinary usage of business, except where the special terms of his authority go to the -contrary. In th© case of shares and other things, which went vp a*. 1 < ... -.lie duty of promptly executing me principal’s order, and of informing him whether it can be put through, is obvious. He must communicate any material knowledge he possess to liis principal. Sometime® an agent found himself in a difficult position, if he is an agent for a seller, and secures a profitable opportunity of financing a buyer for the same sale. He must tell his principal of tbe prospects ho ha® of a higher price for his services.

Other matters dealt with by His Honour included commissions of land agents, where sale is subject to mortgage; standing, solvency and character of buyers, preparation of sgency contracts, introductions legal jirocoedings, and determination of agency. At the conclusion of the lecture, a hearty vote of thanks was accorded His Honour, on the motion of the chairman, Air H. Gold.