DOC PREVIEW
WVU BCOR 320 - Chapter 16

This preview shows page 1 out of 3 pages.

Save
View full document
Premium Document
Do you want full access? Go Premium and unlock all 3 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

BCOR 320 1nd Edition Lecture 29 Chapter 16 Agency Law Creating Agency Relationship Agency is a relationship in which the agent agrees to perform a task for and under the control of the principal To create an agency there must be Principal Person who has someone else acting on him Agent Person who acts for someone else Who mutually consent that the agent will act on behalf of the principal Be subject to the principal s control Creating a fiduciary relationship Consent Principal must ask the agent to do something Control Principals are liable for the acts of their agents They exercise control over the agents Fiduciary relationship Trustee acts for the benefit of the beneficiary Agent must agree Agents have a fiduciary duty to their principals Elements not required for an agency relationship include A written agreement Equal dignities rule If an agent is empowered to enter into a contract that must be in writing then Formal agreement Compensation The appointment of the agent must also be written Duties of Agents to Principal Duty of loyalty The agent Must act for the benefit of the principal May not receive outside benefits without approval of the principal These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Can neither disclose nor use for her own benefit any confidential information Is not allowed to compete with his principal within the scope of the agency business Duty of loyalty The agent May not act for two principals whose interests conflict May not become a party to a transaction without the principal s permission May not engage in inappropriate behavior that reflects badly on the principal An agent must obey the principal s instructions unless illegal or unethical Agent must act with reasonable care An agent with special skills is held to a higher standard because he she is expected to use those skills Agent must provide information An agent has a duty to provide the principal with all information in her possession that She has reason to believe the principal wants to know Principal s Remedies when the Agent Breaches a Duty The principal can recover damages caused by the agent s breach The agent must refund any profits made from the agency if he breaches his duty of loyalty The principal may rescind a transaction with a disloyal agent Duties of Principal to Agent Duty to reimburse the agent for reasonable expenses Three categories Principal must indemnify an agent for expenses reasonably incurred in carrying out his agency responsibilities Principal must indemnify an agent for tort claims brought by a third party if Duty to reimburse the agent for reasonable expenses Three categories Principal must indemnify the agent for any liability she incurs from third parties as a result of Principal authorized the agent s behavior and the agent did not realize he was committing a tort Entering into a contract on the principal s behalf including attorney s fees and reasonable settlements Duty to cooperate Principal must furnish the agent with the opportunity to work Principal cannot reasonably interfere with the agent s ability to accomplish his task Principal must perform his her part of the contract Terminating Agency Relationships Termination by agent or principal Three choices in terminating the relationship Term agreement Time Achieving a purpose Mutual agreement Agency at will Wrongful termination Principal or agent can no longer perform required duties Failure to obtain license Bankruptcy Death or incapacity of the principal or agent Disloyalty of agent Change in circumstances Change of law Loss or destruction of subject matter Termination of the agency ends the agent s power to act on behalf of the principal Principal s duty to reimburse expenses of the agent ends with the end of the agency Confidential information remains confidential and unusable even after the end of the agency


View Full Document

WVU BCOR 320 - Chapter 16

Download Chapter 16
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Chapter 16 and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Chapter 16 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?