The relationship between a principal and an agent is primarily governed by the contract of agency, which can indeed define their mutual rights and duties. However, even in the absence of explicit contractual terms, certain duties are implied by law, forming the bedrock of the agency relationship. These implied duties are essential for the proper functioning of agency and for protecting the principal's interests.

General Duties of an Agent:

1. Duty to follow Principal's Instructions: An agent must act strictly in accordance with the principal's instructions. Any deviation, unless justified by an emergency, can make the agent liable for losses.
2. Duty to act with Reasonable Care and Skill: This is a paramount duty. An agent is expected to exercise such care and skill as is generally possessed by persons engaged in similar businesses. If the agent possesses special skills, they are expected to use those. The standard of care is objective, based on what a prudent person would do in similar circumstances. Failure to exercise reasonable care and skill, leading to loss for the principal, makes the agent liable. For example, a real estate agent must diligently research property values, a lawyer must competently handle a case, and a broker must execute trades carefully. This duty ensures that the principal's affairs are handled with competence and diligence.
3. Duty to render Accounts: An agent must maintain proper accounts of all transactions undertaken on behalf of the principal and render them when required. This ensures transparency and prevents misappropriation.
4. Duty to communicate with Principal: In cases of difficulty, the agent must use all reasonable diligence to communicate with the principal and obtain their instructions.
5. Duty not to deal on his own account: An agent must not deal in the business of the agency on their own account without the principal's knowledge and consent. If they do, the principal can claim any benefit that may have accrued to the agent.
6. Duty not to make secret profit: An agent must not make any secret profit out of the agency business. Any such profit must be disclosed and handed over to the principal.
7. Duty to remit sums received: All sums received on the principal's behalf must be remitted to the principal.
8. Duty not to delegate (Delegatus non potest delegare): An agent cannot ordinarily delegate their authority to another person, as the principal often appoints an agent based on their personal skill and trustworthiness. Exceptions exist where delegation is customary, or the principal permits it.

These duties, particularly the duty of reasonable care and skill, are fundamental to the trust and confidence inherent in an agency relationship, ensuring that the agent acts in the best interests of the principal.