MGT 2106 Lecture Notes - Lecture 23: Uberrima Fides, Fiduciary, Independent Contractor
Document Summary
In an agency relationship between two parties, one of the parties called the agent agrees to represent or act for the other called the principal. The principal has the right to control the agent"s conduct in matters entrusted to the agent, and the agent must exercise his or her power for the benefit of the principal only. Fiduciary is at the heart of agency law. To act primarily for another"s benefit in matters connected with the undertaking. Agent"s duty to principal is a fiduciary duty one of trust the duty to act with the utmost good faith. All employees who deal with third parties are agents of their employer. Sales made by employee are binding on employer. Representation made by employee are binding on employer. Having said this let"s distinguish between employees and independent contractors. Employees employers control and direct what employees do during the work day.
