LEGL 226 Chapter Notes - Chapter 28: The Employer, Appropriate Behavior, Fiduciary

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17 Oct 2016
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Principal- a person who has someone else acting for him. Agent- a person who acts for someone else. To create an agency relationship, there must be a: Who mutually consent that the agent will act on behalf of the principal. And be subject to the principals control. Agents have a fiduciary duty to their principals. Written agreement-except the equal dignities rules which requires agents to agree if item being sold if unenforceable unless in writing-like land. Formal agreement- as long as they treat each other as agent and principal, the law will treat them like such. Compensation- agency agreement is valid even if the agent is not paid. Duty of loyalty- an agent has a fiduciary duty to act loyally for the principals benefit in all matters connected in the agency relationship. Outside benefits- an agent may not receive profits unless the principal knows and approves.

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