Class notes 2-6 - Class notes 2/6/12 Formation of Agency 1....

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Class notes 2/6/12 Formation of Agency 1. Agreement 2. Ratification 3. Estoppel 4. Operation of Law – Emergency situation Duties of Agent 1. Duty of Loyalty – Agent may not engage in self-dealing. 2. Duty of Notification – The employee always has to tell the principle about any business ventures that they are negotiating on behalf of the principle. 3. Duty of Performance – When performing the tasks, the employee must act as a reasonable prudent person. 4. Duty of Accounting – Agents must account for the funds on hand for the principle. No commingling. Duties of Principal 1. Compensate them for the work they have done. 2. Reimburse the employee for any cost incurred while doing business. 3. Duty of Indemnification – The principal is required to reimburse the agent for costs associated with litigation. If the agent is sued for his acts while performing for the principal the principal will pick up all costs. Liability for Contracts
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Class notes 2-6 - Class notes 2/6/12 Formation of Agency 1....

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