Relations Between Principle And Agent Flashcards
The agent has a duty to perform their undertakings and obey instructions
True
An agent must act to pervert liability or tort
True
Does an agents duty of care differ depending on if they are gratuitous or gor reward
Yes and if they have presented themselves to be of particular skill
Which are the fiduciary duties of an agent
loyalty and fidelity
What is a fiduciary
A person who has undertaken to act for another which gives rise to a relationship of trust and confidence
All fiduciary duties are the same
False
All agents are fiduciaries
False, they must be trusted
Fiduciary duties arrise from equity and not from contracts
True although contracts can modify them
How is the fiduciary duties of a companty director different from that of a normal fiduciary
Instead of not being to enrich themselves they shall follow a rule of not having any conflict of interst, they must not recive benefits from third parties and they must disclose their interest in the ralation
What does the regulated duties of commercial agents put extra focuse on
That the commercial agent should inform the principle as much as possible
What is the fiduciary no conflict rule
That a fiduciary may not enter into a relationship wich may lead to conflicts of interest between principles
WHat is the fiduciary duty not to make a secret profit
The fiduciary may not use the position to enrich themselves without explicit consent from principle
The secret profit of the fiduciary beongs to the principle
True, it becomes a liability if it is made
What is a bribe
A payment to an agent that is know to be an agent without making the principle aware
A bribe must be for a contract between an agent and a third party
No, and it does not even have to be immediately to the agent, it can also be to a close family member or equivalent
What can a principle do if the agent is bribed
Terminate the realtionship, withhold remuniration or demand the value of the bribe at the moment of bribery
The principle may make a profit on a breach of duty by the agent such as in the case of bribery
False
In english courts a fiduciary may retain the profits of a well invested bribe or secret profit
True
A principle may seek damages for the tort of bribery
Yea, for any excess damages made as a result of a bribe
A contract made by a bribed agent is not voidable
False
If the agent fails to keep apart their own and the principles assets the principal has a claim on the entire fund
True
Can an agent cannot without explicit consent from the principle delegate authority
No, not ever
The acts of an unauthorised sub agent will not bind the principle
Yes and no, the principle bẃill not be boud to payment and responsibility but third parties may rely on the apparent authority of the sub agent to bind the principle to contracts
An agent appointing an unauthorised sub agent may be liable for its payment
True
What is privity of contract
When no outside party can be held liable for breach of contract
When is there privity of contract on an apointment of a sub agent
When a principle allows the apointment or ratifies such an apointment, then the sub agent just becomes another agent of the principle and the agent will not be liable for their actions as long as the agent was selected with care
An agent is alway entitled to remuniration
No, only if it is a commercial agent or it is implied or expressed in the contract
An agent is not entitled reword for a cause he cannot show he was the cause of
True
If there is no contract or implication (such as usage) to the controary a principle must compensate an agent
False
When will an agent loose their right to commision
- Acts outside authority, 2 Illegal acts, 3 acts in breach of duty or 4 acts outs
May a commercial agent gain a commision for a tracsaction that is a result of their action even if they were not the effective cause of it
Yes
When is a commercial agent to be compesated
When a transaction has been concluded by their action or when a trasaction has been concluded by a third party whom he has previously aquired as a customer for trasactions of such a kind
An agent has the right to be reimbursed for all actions taken within their authority
True
Are estate agents entitled to embersment over their commision
No, not unless their contracts explicitly states so
What is a lien
The right of an agent to posess the goods of their principle in the case that they were not reimbersed as per agreement
A principle can terminate the agency wether or not this is a breach of contracts as long as the agent has not fufilled their obligations
true
How may an agency be terminated outside the means of revocation of authority by the principle, name 6 reasons
By 1. the execution of the agents commission, by 2. the appointment expiering, by 3. agreement between the principle and agent, by 4. destruction of the agency subject matter, by 5. the alteration of the agency making it illegual, impossible or just different from agreed upon or lastly 6. by death, insanity or bankrupcy of either party
When can an agents authority not be revoked without its consent
When authority is given by deed, when authority is given by atterney and when the agent has incurred personal liability in the performance of the authority (you cannot dismiss a contractor just after theyve bought the materials)
If an agency is timed will a bankrupcy or destruction of property not be enough for an agent to demand compesation for all the work over the entire duration past the incident
It depends on the contract but generally the agency will be terminated upon such incident
How long of a notice is required for a commercial agents agency before it is terminated
About as many months as years that a contract has commenced although the parties may agree to longer periods, although if the contract is frustrated (some accident makes it impossible or mutated) the agency may be terminated immediately
A commercia agent shall be compensated if the agency is terminated
true
Is there a cap on an agents indemnity at the termination of an agency
Yes it must not exeed the remuniration of 1 year on the average of the past 5 years
A commercial agent is entitled to compensation of the damages he suffers as a result of the rermination of the relations with the principle
True
When is an indemnity not payable to a commercial agent
The contract is terminated by a breach, an unjust termination by the agent (due to actions of principle or the health of the agent), if the agent transferr their duties
Commercial agent regulations can be contracted out of
False
The estate of a dead principle is bound by the apparent authority of their agent while an insane principle is not
False, it is the other way around.
