Agents - exercise reasonable care and diligence in...

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Agents have several duties. They have the duty of loyalty which means that the agent owes an obligation of undivided loyalty to the principal. Agents also have the duty to protect confidential information meaning that they are required to keep all confidential information safe from others not involved such as trade secrets, and information data used in business operations. Agents have the duty to obey instructions issued by his or her principal meaning the agent must adhere to the instruction given by his or her superior as long as it is not illegal or immoral. Agents have the duty to inform the principal of all facts that affect the subject matter of the agency that are obtained within the scope of the employment. Duty not to be negligent is another duty that agents have which means the agent or employee has a duty to act in good faith and to
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Unformatted text preview: exercise reasonable care and diligence in performing tasks Finally, there is the duty to account which means the agent must keep proper records showing receipts and expenditures so a complete accounting may be rendered. Principles have the duty to compensate its employees according to the contract or with generally accepted accounting principles; this applies in general as well as sales representatives who work off of commission. Commission must be paid in accordance with the contract. The duty to reimburse is when the agent has the right to reimbursement for money properly expended on behalf of his or her principal. And finally the duty to indemnify means to hold a person harmless or free from liability. Basically it means that an agent cannot be held responsible for the actions carried out under orders from the principal....
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This note was uploaded on 08/30/2011 for the course BUSINESS 101 taught by Professor Wase during the Spring '11 term at Grantham.

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