Agency

Question 1

Duties of Agency to Principal

Answer 1

Owe Fiduciary of duty: benefit for P

Duty of loyalty:act on P interest

Duty of Obedience: obey all reasonable instruction by P

Duty of Reasonable Care:liab of negligent

Duty of Account: keep record &cant commingle

Question 2

Agency vs Principle

Answer 2

Agency: has legal relationship in which the Principal appoints Agent to act on his behalf

PRINCIPAL: have CAPACITY and CONSENT

Written and consideration are not require to create agency relationship unless when buy/sales Land & impossible to perform in 1yr

Question 3

Federal Unemployment Tax Act (FUTA)

Answer 3

Required if employer employ even 1 person for some portion of a day for 20wks or pay $1500 or more in wages in any calendar quarter

Question 4

Forming an agency relationship require

Answer 4

Both principle and agency consent to the agency

Question 5

Destruction of the subject matter of the agency

Answer 5

Automatically dissolved agency, removes the reason for the agency’s existence

Question 6

Tenancy in common

Answer 6

Interest passes to heirs, donee or purchaser