SMG LA 245 Lecture Notes - Lecture 11: Fiduciary, W. M. Keck Observatory
Document Summary
If you do everything yourself, you have control over the result, but size and scope of business is limited, however if you have more people you increase potential for reward but also increase risk. 17. 1a consent: to establish consent, principal has to ask agent to do something and agent must agree. i. e: hospital is not an agent of the lawyer, because they did not agree to that. 17. 1b control: principals are liable for an agent"s acts because they exercise control over that person, have to have consent for a principal agency relationship, but also have control over the agent. In order for there to be an agency relationship need to have consent, control, and fiduciary duty. 17. 2a duty of loyalty: agent has a fiduciary duty to act loyally for the principal"s benefit in all matters connected with agency relationship, an agent may not receive outside benefits unless the principal knows and approves.
