agency - duties which Agents owe Principals

Question 1

Duties A owes to P

Answer 1

In return for reasonable compensation and reimbursement for expenses, A owes P 3 duties.

Question 2

Duties A owes to P

3 duties

Answer 2

Duty of Care
Duty to Obey reasonable instructions
Duty of Loyalty

Question 3

Duties A owes to P
3 duties
Duty of loyalty

Answer 3

The agent may NEVER engage in:

1. Self-dealing: A cannot receive a benefit to the detriment of P.
2. Usurping: A cannot usurp the P’s opportunity.
3. Secret Profits: A cannot make a profit at the P’s expense w/o disclosure.

Question 4

Duties A owes to P
3 duties
remedy for breach of duty

Answer 4

P may seek indemnity from A
P may recover losses that are caused by the breach
P may also disgorge profits made by breaching A