Duties Agent Owes to Principal

Question 1

Three Duties Agent Owes Principal

Answer 1

1- duty of care
2- duty to obey instructions that are reasonable
3- duty of loyalty

Question 2

3 sub-duties w/in duty of loyalty

Answer 2

1- self-dealing: agent cannot receive a benefit to the detriment of the principal
2- usurping the principal’s opportunity
3- secret profits- making a profit at the principal’s expense w/o disclosure

Question 3

Remedies for breach

Answer 3

Get an accounting and recover:

• losses caused by the breach
• disgorged profits made by the breaching agent
• withholding of compensation