Fin 3055 Chapter 28 Notes

Fin 3055 Chapter 28 Notes - -agent cant engage in...

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Chapter 28- Inside the Agency Indemnification- A promise to pay someone else’s obligations Required to create an Agency Principal- In an agency relationship, the principal is the person for whom the agent is acting. Agent - A person who acts for a principal. Consent- principal must ask the agent to do something and the agent must agree Control- principals are liable for agents because they exercise control Fiduciary Relationship- one person to benefit from another Equal dignities rule- If an agent is empowered to enter into a contract that must be in writing, then the appointment of the agent must also be written. Fiduciary duty- An obligation to behave in a trustworthy and confidential fashion toward the object of that duty Duty of the agent -Agent may not receive outside benefits unless principal approves -may not act for more than 1 principal with conflicting interests -cant use confidential information acquired during the period
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Unformatted text preview: -agent cant engage in inappropriate behavior-Duty of care- agent must act with reasonable care-Gratuitous agent- free not paid, liable for gross negligence -duty to provide information 3 Remedies when an agent breaches a duty-Damages-Profits-Rescind Duty of the Principal -must reimburse agent for reasonable expenses-tort claims by a third party-reimburse for acts of good faith-must furnish the agent with the things needed to work-principal cannot interfere with work Terminating an Agency Relationship-agent or principal can terminate at anytime- term agreement- states how long relationship will last-achieving a purpose- relationship last until achieved - mutual agreement-agency at will-wrongful termination- either party has the power to walk out but not the right-No longer perform required duties-loss of qualification-bankrupt-death-disloyalty -Change in law...
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Fin 3055 Chapter 28 Notes - -agent cant engage in...

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