Duty of diligence, loyalty, and absolute good faith implied.

- Law implies, as a part of the contract by which every agency arises, that the agent agrees to have and exercise towards the agent's principal diligence, loyalty, and absolute good faith. Render & Hammett v. Hartford Fire Ins. Co., 33 Ga. App. 716, 127 S.E. 902 (1925); Anderson v. Redwal Music Co., 122 Ga. App. 247, 176 S.E.2d 645 (1970).

Partnership and all partners liable for breach.

- If the agent is a partnership, the partnership and all its members may be held liable for a violation of the duty of diligence, loyalty, and absolute good faith by any member as for a breach of contract. Render & Hammett v. Hartford Fire Ins. Co., 33 Ga. App. 716, 127 S.E. 902 (1925).

Delay in notifying principal of service of process.

- If the law authorizes service of process upon a principal by service upon the agent, it is the agent's duty, when service is so made, to exercise diligence to notify the principal, and in default thereof, the agent will be liable for such damage as the principal may sustain. Render & Hammett v. Hartford Fire Ins. Co., 33 Ga. App. 716, 127 S.E. 902 (1925).

Money stolen because of failure to exercise ordinary care.

- Agent would be liable if money was stolen as a result of the agent's failure to perform some duty with respect to the agent's handling and custody which rested on the agent independently of the instructions under which the agent was acting, if such failure on the agent's part, under the circumstances, amounted to a failure to exercise ordinary care. Cave v. Lougee & Zimmer, 134 Ga. 135, 67 S.E. 667 (1910).

One undertaking to procure insurance liable for fraud or negligence.

- If one undertakes to procure insurance for another and is guilty of fraud or negligence in the undertaking, one is liable for loss or damage to the limit of the agreed policy. Anderson v. Redwal Music Co., 122 Ga. App. 247, 176 S.E.2d 645 (1970).

A cause of action will lie for breach of contract to procure insurance on behalf of another, and, irrespective of contractual duty, an action in tort may be based upon a misrepresentation that insurance coverage has been effected when no policy or binder has been issued. Anderson v. Redwal Music Co., 122 Ga. App. 247, 176 S.E.2d 645 (1970).

Creditor selling security must use ordinary diligence.

- If a bill of sale is given to secure debt and on maturity of the debt the creditor elects to exercise the right given therein to take possession of the security and to sell the security at private sale as the agent of the debtors, the creditor is acting as agent for the debtors in thus dealing with the security and must exercise ordinary diligence, such as persons of common prudence use in relation to their own affairs, in handling such security, having due regard to the rights of the debtors therein. Goldin v. Federal Intermediate Credit Bank, 50 Ga. App. 790, 179 S.E. 291 (1935).

Gratuitous agent.

- Voluntary agent without reward is only liable for gross neglect in and about the business of the principal. Armstrong, Cator & Co. v. Pease, 66 Ga. 70 (1880).

Gratuitous agent owes the principal the duty to exercise slight diligence. Simmerson v. Blanks, 149 Ga. App. 478, 254 S.E.2d 716 (1979).

Rule requiring mutuality of promises inapplicable to voluntary agent.

- Rule that when mutual promises furnish the only consideration for a contract the promises must be mutually binding was inapplicable if the case was made to substantially rest on the theory that there was no valuable consideration for the agreement, but that the defendant agreed with the plaintiff to render certain services as the agent of the latter, and that the defendant was liable for gross neglect as a voluntary agent. Barber v. Roland, 143 Ga. 432, 85 S.E. 321 (1915).

Benefit held sufficient consideration to require ordinary care.

- If the jury is authorized to find that the defendant voluntarily solicited control of the plaintiff's money for the purpose of lending the money to defendant's own customers and that the defendant wanted the money for this purpose because of some benefit or advantage which would accrue personally to the defendant by reason of the agency, the evidence upon this question, though circumstantial, authorizes the inference that the contract of agency was supported by a consideration and bound the defendant to ordinary care about the business of the principal. Benton v. Roberts, 41 Ga. App. 189, 152 S.E. 141 (1930).

Proper appraisal of agent's conduct encompasses knowledge which the agent professes to possess. Summerson v. Blanks, 149 Ga. App. 478, 254 S.E.2d 716 (1979) (gratuitous agent).

Charge substantially in the language of section is sufficient. National Pencil Co. v. Pinkerton's Nat'l Detective Agency, 19 Ga. App. 429, 91 S.E. 432 (1917).

Evidence was sufficient to create an issue for jury determination as to whether real estate agent negligently represented seller by failing to inform the seller that documents executed at closing granted the agent a security interest. Welch v. Holley, 191 Ga. App. 532, 382 S.E.2d 128 (1989).

Cited in Benton v. Roberts, 35 Ga. App. 749, 134 S.E. 846 (1926); Stewart v. Boykin, 165 Ga. App. 868, 303 S.E.2d 50 (1983); Cabral v. White, 181 Ga. App. 816, 354 S.E.2d 162 (1987); Faulkner v. Hood, 246 Ga. App. 714, 539 S.E.2d 886 (2000).

Am. Jur. 2d.

- 3 Am. Jur. 2d, Agency, § 213 et seq.

C.J.S.

- 2A C.J.S., Agency, § 305 et seq.

ALR.

- Liability of agent for shrinkage or shortage in commodity purchased for principal, 8 A.L.R. 1120.

Duty of factor, broker, or commission merchant with respect to care and protection of goods entrusted to him, 17 A.L.R. 538.

Liability of real estate agent or broker to employer because of unfit character of purchaser or tenant procured by him, 60 A.L.R. 1379.

Personal liability of agent in respect of funds received from third person and turned over to principal not entitled thereto, 82 A.L.R. 307.

Advertising agency as agent of advertising medium or of advertiser, 53 A.L.R.2d 1139.

Liability of vendor's real-estate broker or agent to purchaser or prospect for misrepresenting or concealing offer or acceptance, 55 A.L.R.2d 342.

Real-estate broker's liability to principal for accepting note, check, or property, rather than cash, as earnest money, 59 A.L.R.2d 1455.

Right of principal to recover punitive damages for agent's or broker's breach of duty, 67 A.L.R.2d 952.

Liability of real-estate broker to principal for negligence in carrying out agency, 94 A.L.R.2d 468.

Liability of insurance agent, for exposure of insurer to liability, because of failure to cancel or reduce risk, 35 A.L.R.3d 792.

Liability of insurance agent, for exposure of insurer to liability, because of failure to fully disclose or assess risk or to report issuance of policy, 35 A.L.R.3d 821.

Liability of insurance agent, for exposure of insurer to liability, because of issuance of policy beyond authority or contrary to instructions, 35 A.L.R.3d 907.

Liability of insurance agent or broker on ground of inadequacy of liability insurance coverage procured, 72 A.L.R.3d 704, 60 A.L.R.5th 165.

Liability of insurance agent or broker on ground of inadequacy of life, health, and accident insurance coverage procured, 72 A.L.R.3d 735.

Liability of insurance agent or broker on ground of inadequacy of property insurance coverage procured, 72 A.L.R.3d 747.

Liability of insurance agent or broker for placing insurance with insolvent carrier, 42 A.L.R.5th 199.