Agency: Duties and Liabilities of Agents and Principals

Question 1

An agent’s duties an obligations are

Answer 1

1) By loyal and obedient
2) Keep an accounting for the principal
3) use reasonable due care in actions
4) give important info to principal
5) indemnify the principal
6) refrain from competing against the principal
7) discontinuing acting as the agent when the agency is terminated

Question 2

Agency relationship can be established in what ways

Answer 2

1) Express agreement
2) Implied Agreement
3) Agency by necessity
4) Agency by Ratification
5) Agency by Estoppel

Question 3

To eliminate apparent authority the Principal must

Answer 3

1) give actual notice to 3rd parties who have previously dealt with the principal through the agent
2) Give Constructive notice (advertisements) to parties aware of the existence of the agency