Duties Agents owe to Principal

Question 1

Duties agents owe to P

Answer 1

Prohibited from acting in any matter inconsistent with his agency or trust and at all times bound to exercise the utmost good faith and loyalty in the performance of his duties.

Question 2

Duties Owed Rest

Answer 2

i. Rest. 2d 387: Unless otherwise agreed, an agent is subject to a duty to his principal to act solely for the benefit of the principal in all matters connected with his agency.
ii. REST 2D 388: Unless otherwise agreed, an agent who makes a profit in connection with transactions conducted by him on behalf of the principal is under a duty to give such profit to the principal.

Question 3

Remedy for breach

Answer 3

disgorgement (all profits)

Question 4

How to prevent breach?

Answer 4

Disclosure

Question 5

Elements of breach of fiduciary duty

Answer 5

i. Evidence of a fiduciary duty
ii. Breach of duty
iii. Causation
iv. Damages

Question 6

Courts impose fiduciary on relationships due to

Answer 6

special trust

Question 7

Agents fiduciary duties

Answer 7

a. Duty to account for profits arising out of employment
b. The duty not to act as, or on account of, ad adverse party without the principals consent
c. The duty not to compete with the principal on his own account or for another in matter relating to the subject matter of the agency
d. The duty to deal fairly with the principal in all transactions between them.

Question 8

An agent who fails to disclose his agency and the identity of his P

Answer 8

LIABLE.- Disclosure is key

Question 9

P who entrusts agent with management of his enterprise

Answer 9

is laible to 3rd parties A engages with.