3. Duties Of Agent & Principal Flashcards
1
Q
What duties does Principal owe to Agent?
A
Obligations (NOT fiduciary duties)
- Reimbursement of Agent’s expenses/losses in carrying out Principal’s instructions
2
Q
What duties does Agent owe Principal?
A
Fiduciary duties
- Duty of Care
- Duty of Loyalty
- Duty of Obedience
3
Q
What is the duty of care?
A
Reasonable care
4
Q
What is duty of loyalty?
A
Account profits
Act solely for Principal’s benefit (NOT TP)
NOT deal with Principal as adverse party
NOT use Principal’s instructions for own purpose
5
Q
What remedies are available for duty of loyalty?
A
Contract Tort Constructive trust Withhold competition Terminate agency
6
Q
What is duty of obedience?
A
Obey all Principal’s reasonable directions
7
Q
What are the liabilities for duty of obedience?
A
Principal
- Agent’s violation of directions
Agent
- Principal’s losses
