Agency: Agent Duties to Principals Flashcards

1
Q

Duties Agents Owe Principals

A

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

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2
Q

Duty of Loyalty

A

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

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3
Q

Principal’s Remedies for Breach of Duties

A

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

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