Agency Rights and Duties

Question 1

Agents Owe to Principals

Duties

Answer 1

1. Duty to exercise reasonable care
2. Duty to obey
3. Duty of loyalty

Question 2

Agent Duty of Loyalty

Answer 2

• Cannot usurp business opportunities
• No secret profits
• Duty to provide information
• No competing business
• Duty not to reveal confidential information

Big 4 (first 4)

Question 3

Principle Owes to Agent

Duties

Answer 3

1. No illegal acts
2. Deal fairly and in good faith
3. Contractual Duties
4. Compensation (if agreed upon)
5. Duty not to interfere with Agents work
6. Duty to Indemnify

Question 4

Princiapal Remedies for Breach Against Agent

Answer 4

1. Injunctions
2. BoK action for monetary damages
3. Resitution
4. Termination of relationship
5. Tort action for punitive damages (harm suffered)