Duties of Agent & Principal to Each Other

Question 1

Are both P and A fiduciaries to one another?

Answer 1

No; relationship only runs from Agent to Principal

Question 2

What fiduciary duties does agent owe?

Answer 2

1) duty of loyalty
2) obedience to lawful instructions
3) reasonable care under circumstances

Question 3

What is the A’s duty of loyalty?

Answer 3

A owes P undivided loyalty

Question 3

What is the A’s duty of care?

Answer 3

A owes duty to P to carry out their agency with reasonable care

Question 4

What is the A’s liability for subagent’s acts?

Answer 4

Absolutely liability for breaches by subagent

Question 5

What duties does subagent owe to P?

Answer 5

Same as A IF P authorized; only owes FD to A if P didn’t authorize though

Question 5

What are the 5 key obligations of A per the duty of loyalty?

Answer 5

1) A can’t use role to profit for self
2) A must act solely for P’s benefit
3) A can’t deal with P adversely
4) A can’t compete re subject matter
5) A can’t use P property for self/3P

Question 6

What is a subagent?

Answer 6

Person appointed by A to perform A’s work on behalf of A for P

Question 6

What is the A’s duty of obedience?

Answer 6

A must obey all reasonable directions of their P (liable for loss otherwise)

Question 7

What duties does P owe A?

Answer 7

1) contractual duties
2) reasonable compensation
3) reimbursement for expenses
(includes indemnity, cooperation, and no unreasonable interference)