Secret profit: Difference between revisions
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{{a|contract|}}When an [[agent]] deals with a [[counterparty]] on its [[principal]]’s behalf, the agent must account for the transaction proceeds to the principal. The agent cannot make a [[secret profit]] from the principal’s assets. For example, say I gave you £50 to run up to the super ''Black Gull Bookshop'' in East Finchley to buy a copy of the gorgeous Folio Society edition of {{author|Thomas Kuhn}}’s {{br|The Structure of Scientific Revolutions}} which I saw in the window for £50. If, when you get there, the book is on special, and you manage to buy it for £30, you don’t get to keep the £20 change, even though I was quite prepared to pay £50 for the book. | {{a|contract|}}When an [[agent]] deals with a [[counterparty]] on its [[principal]]’s behalf, the agent must account for the transaction proceeds to the principal. The agent cannot make a [[secret profit]] from the principal’s assets. | ||
For example, say I gave you £50 to run up to the super ''Black Gull Bookshop'' in East Finchley to buy a copy of the gorgeous Folio Society edition of {{author|Thomas Kuhn}}’s {{br|The Structure of Scientific Revolutions}} which I saw in the window for £50. | |||
If, when you get there, the book is on special, and you manage to buy it for £30, you don’t get to keep the £20 change, even though I was quite prepared to pay £50 for the book. You must account to me for the £20. Seems obvious, right? | |||
{{sa}} | {{sa}} | ||
*[[Agency]] | *[[Agency]] | ||
Latest revision as of 15:43, 30 October 2020
When an agent deals with a counterparty on its principal’s behalf, the agent must account for the transaction proceeds to the principal. The agent cannot make a secret profit from the principal’s assets.
For example, say I gave you £50 to run up to the super Black Gull Bookshop in East Finchley to buy a copy of the gorgeous Folio Society edition of Thomas Kuhn’s The Structure of Scientific Revolutions which I saw in the window for £50.
If, when you get there, the book is on special, and you manage to buy it for £30, you don’t get to keep the £20 change, even though I was quite prepared to pay £50 for the book. You must account to me for the £20. Seems obvious, right?