AJ 010 Chapter Notes - Chapter 5: Moe Williams, Fiduciary

• School: Pasadena City College
• Department: Administration of Justice
• Course: AJ 010
• Professor: Gallon

Document Summary

An agent shall not carry out an agency if its execution would manifestly result in loss or damage to the principal. The duty of the agent who is merely an extension of the personality of the principal is to render service for the benefit of the principal and not to act to his detriment. Furthermore, the agent must exercise due diligence in carrying out the agency. The agent shall be liable for damages if its execution would manifestly result in loss or damage to the principal. Note: this provision applies to both onerous and gratuitous transactions. The law does not distinguish so neither should we. Rationale: an agent occupies a fiduciary position and therefore is bound to exercise loyalty, obedience, and diligence with respect to the interest of the principal. Except: if before acting that way, it is obvious that the act will result to damage, then the agent is liable.