Rights and Duties of Parties to an Agency Relationship Flashcards
What are the three duties agents owed to principals?
Duty to exercise care
Duty to obey reasonable instruction
Duty of loyalty.
What is the duty of loyalty?
The agent cannot usurp a business opportunity
The agent cannot take in secret profits
The agent cannot compete in competing businesses with the principal.
What duties does the principal have to the agent?
Deal fairly and in good faith.
Duty to pay compensation
Duty not to interfere with an agent’s work
Duty to indemnify agent
What are a principal’s remedies for breach of an agent?
Injunction, breach of contract action for monetary damages, a tort, restitution, termination.
What are the rights of an agent?
Receive compensation.
Not to have the principal interfere with work.
Indemnification and reimbursement.
Work in a safe environment.
