Agency: Duties of Agent & Principle Flashcards Preview

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Flashcards in Agency: Duties of Agent & Principle Deck (3)
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1

Agency:
Duties of Principle

Duties of Principle
- comply with agreement
- reimburse reasonable expenses

2

Agency:
Duties of Agent

Duties of Agent
- Fiduciary duty (supreme duty of loyalty)
- Duty to follow instructions
- Reasonable Care
- Accounting
- Keep funds separate
- Duty of disclosure
- Duty of loyalty
- no competition
- no conflict of interest
- no appropriation of business opportunities
- no disclosure of confidential information

3

Agency:
Duties upon Termination

By Act
- Termination by fulfilment
- Termination by lapse of time
- Termination by specified event
- Termination by mutual agreement
- Termination by unilateral act of one party
- except a principle cannot terminate an agency coupled with an interest (requires writing)
- only terminates express and implied authority
- principle has duty to notify
- agent has duty to not use apparent authority
- need actual or constructive notice (advertisement)
By Operation of Law
- death of either party
- insanity of principal
- no party with capacity
- by bankruptcy
- agent realizes that principal would no longer want something
- by agent's bankruptcy only if it impairs ability to act
- by change of law
- by circumstances such as by loss or destruction of subject matter
- termination by operation of law ends all authority

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