THE TRUSTEE’S OBLIGATION TO INFORM THE PRINCIPAL ON THE PROGRESS OF THE MANDATE. THE ACCOUNTING MANAGEMENT AND THE REPORT
1 Political Economy Department, Faculty of Economical Sciences and Business Administration, Babeș-Bolyai University, Cluj-Napoca, Romania
dana.tulai@econ.ubbcluj.ro
Abstract: This paper aims to bring to attention an issue which involves both economical and juridical aspects: agents’ obligation to give an account to principals, derived from mandate contracts. The legal doctrine, both Romanian and European, has largely debated upon this aspect, particularly the form in which the accounting report must be given, as well as the possibility of tacit exempt from the obligation of the trustee to hand over the management account, in cases in which the contractual relations of the parties are based upon a high degree of trust. As shown in this paper, we believe that a genuine accounting report is required from agents only if the principals explicitly demand it. Also, since the legal provisions on the matter do not expressly impose any formalities for the completion of this report, we believe that it is the principals’ decision to establish the form in which the trustees must hand over the accounts.
Keywords: mandate; accounting; report; management
