Principles applicable in Joshua Kerabu and Grace Kwambo’s case
- An agent has a duty not to allow his interests to conflict with those of the principal
- He also has a duty not to make any secret profit.
- Grace Kwambo is in breach of the above duties as she was the agent and Joshua Kerabu was the principal
- Joshua Kerabu is entitled to recover the first laptop from Grace Kwarnbo.
- And this would effectively terminate the agency relationship in respect of that
computer and the 5% commission would not be paid.
- Grace Kwambo has made a secret profit on the second laptop.
- Such a breach of her obligation would entitle Joshua Kerabu to terminate the agency relationship without notice or compensation.
- He would also be entitled to recover the Shs.10,000 undisclosed profit and will not pay Grace Kwambo compensation
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