Agency: Duties of Agent & Principle

Question 1

Agency:

Duties of Principle

Answer 1

Duties of Principle

• comply with agreement
• reimburse reasonable expenses

Question 2

Agency:

Duties of Agent

Answer 2

Duties of Agent

• Fiduciary duty (supreme duty of loyalty)
• Duty to follow instructions
• Reasonable Care
• Accounting
• Keep funds separate
• Duty of disclosure
• Duty of loyalty
  
  • no competition
  • no conflict of interest
  • no appropriation of business opportunities
  • no disclosure of confidential information

Question 3

Agency:

Duties upon Termination

Answer 3

By Act
- Termination by fulfilment
- Termination by lapse of time
- Termination by specified event
- Termination by mutual agreement
- Termination by unilateral act of one party
- except a principle cannot terminate an agency coupled with an interest (requires writing)
- only terminates express and implied authority
- principle has duty to notify
- agent has duty to not use apparent authority
- need actual or constructive notice (advertisement)
By Operation of Law
- death of either party
- insanity of principal
- no party with capacity
- by bankruptcy
- agent realizes that principal would no longer want something
- by agent’s bankruptcy only if it impairs ability to act
- by change of law
- by circumstances such as by loss or destruction of subject matter
- termination by operation of law ends all authority