Business Law Essay Questions 1. Please identify and explain fully the 5 duties a

Question

Business Law

Essay Questions 1. Please identify and explain fully the 5 duties an agent owes to a principal. 2. Discuss five ways in which an offer terminates by operation of law. What 3. States adopt one of three theories for allowing a defendant in a negligence Why are these duties necessary to assure that the agency relationship works? notice must the parties give to each other in these circumstances? that the plaintiff was alsoion of his case to avoid or reduce liability by showing that the plaintiff was also negligent and that his negligence was the cause of at least some portion of his injuries. Explain the difference between these three theories, being certain to identify which is the most and which is the least plaintiff friendly.

Explanation / Answer

1.

The five Duties of an agent to Principal :

1.Fiduciary Duty : The agent must act with utmost loyalty and good faith . The agent must not compete with the principal,make secret profits,misappropriate assets/property, buy for self consumption without permission,disclose confidential information.

2. Duty of Obedience : The agent must follow lawful explicit instructions of the principal. In case if the instuctions are not clear , the agent must act in good faith and reasonable manner. In case of an emergency and cannot reach the principal, the agent may deviate to the instructions to the extent possible.

3. Duty of care and Diligence : The agent must use the care and skill of a reasonable person and to the best of his or her knowledge/skills

4. Duty of Notifications : The agent must use reasonable efforts to notify the principal of all the information that he/she possesses that is relevant to the subject matter of the agency and should know the information that needs to be passed on to the principal.

5. Duty to Account : The agent must account for all the money/property received or expended on behalf of the principal and not misuse the money/rights of the assets of the principal.

Hence , if the agent does not perform any of the above duties it would result to a breach in the duty. The agent would be then liable to the principal for losses resulting from the agent's breach of duty.the transactions carried on between them may be voidable by the principal.

The parties must perform according to the terms of the engagement. However the agent has duties beyond contractual obligations as mentioned above.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.