Rights and Duties of Parties

Question 1

Agent’s duty of care

Answer 1

must follow P’s instructions and perform duties, tasks, and transactions with reasonable care, diligence and judgment

Question 2

Define

A’s duty of loyalty/obedience

Answer 2

A should avoid acts in A’s self interest in agency matters and regrain from secretly profiting from transactions on behald of P

Question 3

Who is entitled to Notice and Accounting?

Answer 3

P is entitled to notice of all relevant issues and an accounting of property or funds used on behalf of P

Question 4

What duties does P owe to A

Answer 4

1) deal fairly and in good faith per contract terms
2) compensation
3) duty to not interfere
4) duty to indemnify

Question 5

Define

Duty of fair dealing and good faith per contract?

Answer 5

provide A with information concerning risks of physical or financial harm?loss that P knows but A does not

Duty to not injure A’s business reputation

Question 6

Define

Duty of Compensation

Answer 6

if P expressly or impliedly agreed to pay A, P must pay

Question 7

Define

Duty to not interfere

Answer 7

P ows duty to not interfere with A’s completion of agency work

Question 8

Define

Duty to Indemnify

Answer 8

P owes duty to A to idemnify A against pecuniary loss suffered in connection with agency relationship and within scope of A’s actual authority (but not for negligence or illegal or wrongful conduct)

Question 9

What are P’s remedies for breach by A

Answer 9

Injunction, breach of contract action, tort action, recission, restitution, termination of agency relationship, foreiture of compensation, or disgorgement

Question 10

Define

Rights of Agent

Answer 10

1) compensation
2) not have P interfere
3) indemnification/reimbursement
4) safe work enviroment
5) contract or tort remedies

Question 11

What duties does A owe to P

Answer 11

Loyalty and performance based duties

Question 12

Define

Duty of Loyalty

Answer 12

1) act solely for the benefit of P
2) not dealing with P as an adverse party
3) not acquiring material benefit in actions of behalf of P
4) not usurping business oppurtunities
5) not competing with P
6) not using P’s confidential information

Question 13

Define

Performace-based duties A owes to P

Answer 13

contractual duties, duty of care/diligence normally exercised by A in similar circumstances
- duty of obedience
- duty to provide relevant information and accounting
- no commingling of accounts