The law of agency provides for the rights and duties between the principal and agent. An agent owes various duties to his principal, and the foremost is fiduciary duty. This means that the agent must act in utmost good faith and be sincere and honest in his dealings with his principal. The agent does not have to make secret profit beyond the commission or other remuneration paid by his principal. Thus, the agent is accountable for every profit which he makes without the principal’s consent.

As the purchaser of the car had paid Duu a commission, Duu is in breach of his fiduciary duty that he owes to Cho. Cho stands to recover the GH¢5,000 he paid to Duu and the GH¢2,500 received as a bribe paid by the purchaser. (4 marks)