Agency

Question 1

Duty of Care

Answer 1

Agent owes a duty of care – reasonableness person. Sliding scale.

Question 2

Duty of loyalty

Answer 2

Agent owe duty of undivided loyalty to principal.

Agent my not use their position as agent to profit for themselves.
Agent must act solely for the benefit of the principal
Agent must refrain from dealing with their principal as an adverse party
Agent may not compete with their principal concerning the subject matter of the agency.
Agent Cant use the principals property for the agent’s own purposes.

BE FAIR TO THE PRINCIPAL… dont abuse it!

Question 3

Duty of obedience

Answer 3

Agent must obey all reasonable directions of their principal. If agent disobeys, they are liable for loss that the principal suffers.

Question 4

Express authority (actual)

Answer 4

Actually continued int he four corners of agency agreement. Conveyed oral or written.

Question 5

Implied (actual) authority

Answer 5

Agent reasonably believes they have as a result of the principals words or actions:

Arising out of custom known to agent
Incidental to express authority
Resulting from prior acquiescence by the principal
Take emergency measures
To delegate authority in cases of ministerial acts where circumstances require, where performance is impossible without delegation, or where delegation is customary.
To pay for and accept delivery of goods
To give general warranties as to fitness and quality, collect payments, and deliver
Manage investments as a prudent investor

Question 6

Apparent Authority

Answer 6

Based on the principal’s manifestations and how they affect the reasonable third party.

What acts bind the principal?
Prior acts
power of position

Question 7

Ratification

Answer 7

Have knowledge of all material facts regarding contract
Accept the entire transaction and
have capacity
no consideration necessary