BUSN 323 Lecture Notes - Lecture 12: Law Of Agency, Fiduciary, Independent Contractor
Document Summary
Chapter 20: agency and liability to third parties. Concept of agency: agency is a consensual relationship between a principal and an agent. The agent is authorized to act on behalf of the principal and is the subject to the principal"s control. Agency law: agency law is primarily state common law, although there are some statutes that arise in agency situations. An agent is a fiduciary: a fiduciary is not always an agent. Creation of agency relationship: expressed agency formed by making a written or oral agreement. Principal"s duties to agent: compensation, reimbursement and indemnification, cooperation, safe working conditions. Agent"s duties to principal: loyalty, notification, performance, obedience, accounting. Principals right and remedies against agents: constructive trust, avoidance. Agent"s rights and remedies against principal: tort and contract remedies, demand for an accounting, specific performance. Authority to the agent: the link to the principal"s liability. Authority of agent and liability of principal: express authority: principal explicitly instructed agent to perform act.
