lecture 4 (duty of A&P to each other

Question 1

general fiduciary principle (Rest. 3d. 8.01)

Answer 1

A –> P (has a fiduciary duty of loyalty to P for P’s benefit in all matters connected w/ agency relationship

Question 2

Material Benefit Arising out of position (Rest. 3d. 8.02)

Answer 2

while avting as agent for P can’t gain material benefit= fiduciary duty of A’s

Question 3

Acting as or on behalf of an adverse party (Rest. 8.03)

Answer 3

(Agent) can’t act on behalf of an adverse party in a transaction involving agency relationship

Question 4

Competition (Rest. 3d. 8.04)

Answer 4

A can’t:
-compete with
-assist P’s competitors

can:
-prepare to compete following termination of agency relationship

Question 5

use of Principal’s property: use of confidential information (8.05)

Answer 5

A can’t:
(1) use P’s property for their own purposes or 3rd party AND
(2) can’t use confidential info of P for A’s own purpose or 3rd parties purpose

Question 6

Principal’s consent 8.06

Answer 6

none of the previous are a breach if P consent’s to the conduct provided that:
-in obtaining P’s consent, the agent: acts in good faith + discloses all material facts that would affect P’s judgment unless P already knows or doesn’t want to know) AND deals fairly w P AND P’s consent is to specific to act/transaction(s) that could reasonably be expected to occur in the ordinary course of agency relationship

Question 7

Duty created by contract 8.07

Answer 7

if contract between A &P–> A has duty to act in accordance with express and implied terms

Question 8

Duties of Care, competence and diligence 8.08

Answer 8

A–> P duty to act w/ C,C &D exercises by agents in similar circumstances
-if A claims to have special skills or knowledge A has dtuy to P to act w C,C, &d EXERCISED BY AGENTS W/ SUCH SKILLS OR KNOWLEDGE

Question 9

Duty to act only within scope of actual authority and to comply with principal’s lawful instructions 8.09

Answer 9

A has duty to act w/n their agent actual authority
Agent has duty to comply with lawful instructions from P concerning A’s actions on behalf of P

Question 10

Duty of good conduct 8.10

Answer 10

A has duty to:
act reasonably and refrain from conduct that would damage P’s enterprise

Question 11

Duty to provide info 8.11

Answer 11

A has duty to use reasonable effort to provide P facts when:
(1) A knows P would wish to have the facts or the facts are material to A’s duties to A AND
(2) facts can be provided w/o violating a superior duty owed by A to another person