Agency: Agent Duties to Principals

Question 1

Duties Agents Owe Principals

Answer 1

(1) Duty of care; (2) Duty to obey instructions that are reasonable; (3) Duty of loyalty

Question 2

Duty of Loyalty

Answer 2

The agent cannot engage in self-dealing by receiving a benefit to the detriment of the principal; cannot usurp the principal’s opportunity, and cannot earn secret profits by making a profit at the principal’s expense without disclosure

Question 3

Principal’s Remedies for Breach of Duties

Answer 3

Principal may recover losses caused by the breach including indemnity and disgorge profits made by the breaching agent