Transcript CHAPTER 24: BASIC PRINCIPLES OF AGENCY

CHAPTER 24:
BASIC PRINCIPLES OF AGENCY
CHAPTER 24:
BASIC PRINCIPLES OF AGENCY
Learning Objectives:
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General Agency Principles
Duties of the Agent
Duties of the Principal
Termination:
 By Operation of Law
 By Parties’ Agreement
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INTRODUCTION TO
THE LAW OF AGENCY
1. Importance of Law of Agency to
Business
2. Agent: Acts for another
3. Principal: Person for whom
another acts
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GENERAL AGENCY PRINCIPLES
1. Three Parties: Agent, Principal,
Third Party
2. Types of Principals:
a. Disclosed
b. Undisclosed
c. Partially disclosed
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GENERAL AGENCY PRINCIPLES
3. Types of Agents
a. Brokers and Factors
b. General and Special
c. Independent Contractors
4. Capacity of the Parties
5. Formal Requirements
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DUTIES OF AGENT
1. Nature of Agency Relationship:
Fiduciary
2. Duty of Loyalty
3. Duty to Protect Confidential Information
4. Duty to Obey Instructions
5. Duty to Inform
6. Duty Not to be Negligent (Duty to Act
Reasonably)
7. Duty to Account
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DUTIES OF PRINCIPAL
1. Duty to Compensate
a. General Duty
b. Special Case: Sales
Representatives
2. Duty to Reimburse
3. Duty to Indemnify
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TERMINATION BY
OPERATION OF LAW
1.
2.
3.
4.
Death
Insanity
Bankruptcy
Destruction or Illegality of
Subject Matter
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TERMINATION BY PARTIES’ ACTIONS
1. Mutual Agreement
2. Unilateral Action
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CHAPTER 24:
BASIC PRINCIPLES OF AGENCY