1 LAW OF AGENCY HOSPITALITY LAW

2 Duties of the Agent 1. Exercise reasonable care in performing the duties 2. Cannot delegate tasks 3. Element of Trust 4. Must not allow their personal interests to conflict with those of the principal

3 Duties of the Agent 5. Account to the principal for all money received. 6. Should keep the money received on behalf of the principal, separate from their own 7. Account any incidental advantage.

4 Rights of the Agent 1. Entitled to the payment 2. Reimbursed by the principal for all the expenses and liabilities incurred in the due performance of the contract.

5 Liability towards third parties 1. If the identity of the principal is disclosed: Principal is responsible 2. If the identity of the principal is not disclosed: Agent is responsible 3. In case of ostensible authority: Both of them are responsible but the case can only be brought against one of them. If the case is brought against the hotel, the hotel may bring a counter claim action against the agent

6 Liability towards third persons 4. If there is no authority: If the principal ratifies the transaction: Principal is liable. If there is no ratification: Agent is liable.