Fiduciary Duties

Question 1

Three Duties ALL Agents Owe to Principals

Answer 1

(1) Duty to exercise reasonable care
(2) Duty to obey reasonable instructions
(3) Duty of loyalty

Question 2

Duty of Loyalty

Answer 2

(1) A cannot usurp a business opportunity
(2) A cannot take secret profits
(3) A cannot compete in competing business with P

Question 3

Duties of Principal to Agent

Answer 3

(1) Deal fairly and in good faith per contract terms
(2) Compensation
(3) Duty not to interfere
(4) Duty to indemnify A against pecuniary loss suffered in connection with the agency relationship and within the scope of A’s actual authority