Formation + duties

Question 1

what is agency

Answer 1

Agency is a consensual fiduciary relationship that arises that when a principal appoints an agent to act on P’s behalf and A consents, implicitly or explicitly, and A is subject to Ps control.

P has the capacity to appoint (no minors and incompetents and most uninc. orgs → cant be Ps)

Question 2

who can a P be/what does a P need

Answer 2

P needs to have the capacity to appoint

so no minors and incompetents and most uninc. orgs → cant be Ps

Question 3

is consideration for a p-a required

Answer 3

no

Question 4

what duties does agent owe to P

Answer 4

1. duty of care - carry out A obligations with responsibility
2. duty of loyalty - be loyal to P, act only to benefit P, cant profit for themselves, cant compete with P regarding agency matters
3. duty of obedience - more so an aspect of the duty of loyalty instead of a separate duty

Question 5

damages

Answer 5

1. breach
2. discouragement - equitable recovery, A has to relinquish profits

Question 6

subagents

Answer 6

appointed by agent to perform functions of agent

Question 7

P duty to A

Answer 7

CL obligations (ie tort damages) but NO fiduciary obligations