Agency - Duties of Agents & Principals

Question 1

What types of authority are terminated by operation of law, i.e, death or bankruptcy?

Answer 1

Express, Implied (Actual), and Apparent Authority

Question 2

What types of authority are terminated by unilateral act, “You’re fired” or “I quit”?

Answer 2

Express and Implied or Actual Authority

Question 3

List the duties of an agent to a principal.

Answer 3

1. Obedience;
2. Reasonable Care;
3. Accounting;
4. Notification;
5. Loyalty.

Question 4

List the agent’s duties of loyalty.

Answer 4

1. No competition;
2. No conflict of interest;
3. No appropriation of business opportunities;
4. No disclosure of confidential information.

Question 5

List the duties of a principal to an agent.

Answer 5

1. To comply with the agency agreement;
2. To reimburse reasonable expenses;
3. To indemnify;
4. To compensate for physical injury.