Duties & Formation Flashcards
1
Q
Duties Agent Owes to Principal
A
Reasonable care.
Obey reasonable instructions.
Loyalty.
2
Q
Loyalty
A
No self dealing (benefit to detriment of principal); no usurpation of principal’s opportunity; no secret profits.
Remedy: Recover losses caused by breach & disgorge profits.
3
Q
General Partnership Formation
A
Definition: GP is an association of two or more people carrying on as co-owners of a business for profit.
No Formalities: can arise from conduct.
Sharing profit creates presumption of GP. But not lending agreements, wages, commission.
