What Constitutes a 'Secret Commission' Received by an Agent? Outline

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The Answer is An agency relationship is normally a fiduciary relationship and as such one where the agent owes special duties to the principal.One of these is that the agent is only entitled to the agreed or customary commission as payment for services that have been performed,and to nothing else.All property and moneys received by the agent must be handed over to the principal,less incurred expenses,and deducting commission or remuneration if this is allowed under the contract.If the principal is aware of the agent being paid an additional commission by a third party and sanctions it,no offence arises.However,often the extra commission secretly earned by the agent is nothing less than a bribe,in which case the agent may face criminal law action by the police as well as civil action by the principal.
Under civil law the principal has a number of remedies available which include:
•Claiming the commission;
•Claiming the commission and cancelling the agency agreement;
•Cancelling the agency agreement;
•Recovering damages for any loss suffered from the agent or the party who has paid the bribe;or
•Recover the secret commission.
In addition to these civil remedies,secret commissions are also subject to both Commonwealth,State and Territory legislation,such as for example the Secret Commissions Act 1905 (Cth).

What Constitutes a 'Secret Commission' Received by an Agent? Outline

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