CHAPTER 24: BASIC PRINCIPLES OF AGENCY

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CHAPTER 24 BASIC PRINCIPLES OF AGENCY
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CHAPTER 24 BASIC PRINCIPLES OF AGENCY

• Learning Objectives
• General Agency Principles
• Duties of the Agent
• Duties of the Principal
• Termination
• By Operation of Law
• By Parties Agreement

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INTRODUCTION TO THE LAW OF AGENCY

1. Importance of Law of Agency to Business
2. Agent Acts for another
3. Principal Person for whom another acts

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GENERAL AGENCY PRINCIPLES

• Three Parties Agent, Principal, Third Party
• Types of Principals
• Disclosed
• Undisclosed
• Partially disclosed

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GENERAL AGENCY PRINCIPLES

• Types of Agents
• Brokers and Factors
• General and Special
• Independent Contractors
• Capacity of the Parties
• Formal Requirements

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DUTIES OF AGENT

1. Nature of Agency Relationship Fiduciary
2. Duty of Loyalty
3. Duty to Protect Confidential Information
4. Duty to Obey Instructions
5. Duty to Inform
6. Duty Not to be Negligent (Duty to Act Reasonably)
7. Duty to Account

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DUTIES OF PRINCIPAL

• Duty to Compensate
• General Duty
• Special Case Sales Representatives
• Duty to Reimburse
• Duty to Indemnify

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TERMINATION BY OPERATION OF LAW

1. Death
2. Insanity
3. Bankruptcy
4. Destruction or Illegality of Subject Matter

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TERMINATION BY PARTIES ACTIONS

1. Mutual Agreement
2. Unilateral Action

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CHAPTER 24 BASIC PRINCIPLES OF AGENCY