Classnotes Agency II

Classnotes Agency II - Agency Law (cont.) Agents Fiduciary...

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Agency Law (cont.) Agent’s Fiduciary Duty of Loyalty to the Principal A fiduciary is someone in a position of trust who owes “fiduciary duties” to another. Typically, the fiduciary is managing property of another or acting on behalf of another (as an agent does). Thus, the agent owes a fiduciary duty of loyalty to the principal. Breaches of Agent’s Fiduciary Duty: Self-Dealing: putting one’s own interests ahead of the principal. Usurping an Opportunity: Since agents owe a duty to communicate, agents must notify principal of all opportunities, and cannot keep the opportunity for themselves. Competing with Principal: An agent cannot maintain loyalty while competing. This is an obvious conflict of interest. Misuse of Confidential Information Dual Agency
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Three types of Disclosure of Agency to Third Parties: Fully-disclosed: Third party 1) knows the agent is acting for a principal, and 2) knows the identity of the principal. Partially-disclosed: Third party
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This note was uploaded on 10/24/2011 for the course ACCT 351 taught by Professor Staff during the Spring '08 term at University of Delaware.

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Classnotes Agency II - Agency Law (cont.) Agents Fiduciary...

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