Duties Agent Owes to Principal

Question 1

In return for reasonable compensation and reimbursement of expenses, agents owe principals:

Answer 1

1) Duty of care
2) Duty to obey instructions that are reasonable
3) Duty of loyalty.

Question 2

Under duty of loyalty, the agent may never do any of the following:

Answer 2

1) Self-dealing - agent cannot receive a benefit to the detriment of the principal
2) Usurping the principal’s opportunity, OR
3) Secret profits - making a profit at the principal’s expense without disclosure.

Question 3

What remedies may a principal recover from an agent for for a breach of duty?

Answer 3

Losses that are caused by the breach and the principal may also disgorge profits made by the breaching agent