BLS 342 Exam 4 (Final) 9

BLS 342 Exam 4 (Final) 9 - Agency coupled with an interest...

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Agency coupled with an interest Irrevocable Agency** o An agency coupled with an Interest (a legal interest—legal interest in property) o A situation where an Agent may have advanced money for the benefit of the Principal to the extent that the Agent has done that, then the Agency becomes irrevocable until the Principal repays the Agent back Agency coupled with an interest (termination of agency form) – when an agency is coupled with a principal for the agent’s benefit, not the principals (agent is the one who benefits) Duty of Loyalty: Agent has the responsibility to act in the interest of the principal. – Avoiding conflicts of interest and protecting the principal’s confidentiality. - Agent can represent and act on behalf of only one principal in an agreement. An agent cannot represent both the principal and a third party. - Duty to notify the principal of any offers from third party. - The duty of loyalty also requires that the agent keep confidential any information about the principal during the course of agency, as well as after the agency relationship is terminated. Agency coupled with an interest: special kind of relationship, created for the agent’s benefit, not for the principals. Given that the agent is the one who benefits, the agency coupled with an interest is also known as power given as security. - Agency relationship is terminated when an event occurs that discharges the principal’s obligation. - Agency coupled with an interest – if you are an agent and you are an agency coupled by an interest (principal owes you something) then principal cannot terminate agency until they are paid. o Fiduciary  – loyalty, being true to your principal, you wouldn’t do anything  to your principal that you wouldn’t do to yourself  Conflict of interest  – wouldn’t take any action that conflicts with the  principal’s business Duty not to compete  If you receive confidential info then you have a duty to not disclose  that information  Duty to account for financial benefits  – agents can benefit from 3 rd  parties as long as they disclose it with their principal and principal  says it’s ok
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Capacity of principal and agent Contractual Capacity (Definition): Mental ability to understand rights and obligations established by contract, with the presumptive
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This note was uploaded on 10/20/2011 for the course BLS 342 taught by Professor Miller during the Spring '08 term at Miami University.

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BLS 342 Exam 4 (Final) 9 - Agency coupled with an interest...

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