3) Duties of principals / agents

Question 1

agent’s duties to principal

Answer 1

1) care
2) loyalty
3) candor
4) to account

Question 2

agent’s duty of care: def

Answer 2

agent must:

1) follow principal’s instructions
2) perform any task w/in scope of agency w reasonable care
3) indemnify (hold harmless) principal against loss caused by agent’s failure ot act w reasonable care w/in the scope of the agency

Question 3

agent’s duty of loyalty: def

Answer 3

1) agent acting on principal’s behalf must prefer the interests of principal over those of agent and others
2) avoid self-dealing
3) not compete w principal or usurp his business opportunities

Question 4

agent’s duty of candor: def

Answer 4

agent must fully disclose to principal any facts relevant to a transaction that principal might reasonably want to know

Question 5

agent’s duty to account: def

Answer 5

agents have duty to account for $ or property received on behalf of a principal
AND
to keep principal’s assets separate from their own

Question 6

duties of principal to agent

Answer 6

1) compensation

2) reimbursement

Question 7

principal’s duty of compensation: def

Answer 7

even if agreement does not provide compensation, principal has duty in quasi-k to pay agent reasonable value of services rendered (agent can seek restitution if not)

Question 8

principal’s duty of reimbusement: def

Answer 8

principal must reimburse agent for all reasonable expenses if incurred in the scope of the agency

Question 9

power and authority of agents: list

Answer 9

1) power to bind

2) actual authority

Question 10

agent’s power to bind: def

Answer 10

when agent acts w/in scope of authorized power, he has the power to bind the principal to ks he enters on principal’s behalf

Question 11

agent’s actual authority: kinds

Answer 11

1) express

2) implied

Question 12

agent’s actual authority: express: def

Answer 12

agent’s authority to do those things that principal has directly authorized in express com (oral or written)

Question 13

agetn’s actual authority: implied: def

Answer 13

inc. authority to conduct transactions reasonably necessary to fulfilling broader responsibilities by principal, including if incidental to business at hand

implied authority to use all means reasonably necessary to accomplish the expressly authorized things

Question 14

agent’s acutal authority: limits

Answer 14

the scope of actual authority granted by the agency rship

Question 15

principal’s power to ratify unauthorized acts of agent: result

Answer 15

if ratifies transactio, principal retroactively grants agent authority to act on p’s behalf, and agrees to be bound by the k. then, it’s binding

Question 16

principal’s power to ratify unauthorized acts of agent: how to ratify

Answer 16

1) has knowledge of all material facts and, either:
a) manifests assent that transaction should affect principal’s legal relations, OR
2) performs some conduct justifiable only ont he assumption that consents to be bound (ex. partial payment)

Question 17

scope of employment: def

Answer 17

acts authorized by employer

Question 18

scope of emplyoment: yes

Answer 18

performing tasks assigned by ER, OR engaging in course of conduct subject to ER’s control

Question 19

scope of employment: no

Answer 19

occurs within an independent course of conduct, not intended by ee to serve any purpose of er

Question 20

scope of employment: factors

Answer 20

1) is this conduct the kind of work ee was hired to perform?
2) is the conduct happening w/in time and space authorized by er?
3) extent to which conduct was intended to serve interests of er