IV. Relationships of Parties Flashcards
1
Q
Principal-Agent
A
- AGENT IS A FIDUCIARY: even a gratutious agent owes principal a
- DUTY OF LOYALTY (interests above own), a
- DUTY OF CARE (depends on skills) AND
- DUTY OF OBEDIENCE
- PRINCIPAL: must comensate, reimburse and indemnify agent
- REMEDIES: wide range of remeides are available
2
Q
Principal-3P
A
assuming that actual atuhrotiy or a substitue is present
- principal ALWAYS LIABLE to a 3P
- 3P ALMOST ALWAYS LIABLE to Principal
- only exception is when there’s an undisclosed P and Agent has special skills (e.g. you sign contract with company through agent, a world famous dancer, to put on a dance show, when the person dancing was principal, who is not a good dancer)
*
- only exception is when there’s an undisclosed P and Agent has special skills (e.g. you sign contract with company through agent, a world famous dancer, to put on a dance show, when the person dancing was principal, who is not a good dancer)
3
Q
Third Party Agent
A
Generally no liability
