Monday, February 18, 2013

Duties Of Agent And Principle

Duties of agent to principal
The agent owes the principal duties in two categories: the fiducial duty and a set of general duties obligate by agency fairness.
Fiduciary duty:
Agency relationship is more than than a haveual one, and the agents responsibilities go beyond the border of the contract. Agency imposes a higher duty than only if to abide by the contract terms. It imposes a fiduciary duty. The law infiltrates the contract creating the agency relationship and reverses the general principle that the parties ar free to act in the absence of agreement. As a fiduciary of the principal, the agent stands in a position of additional trust. His responsibility is to subordinate his self-interest to that of his principal. The fiduciary responsibility is imposed by law. The absence of any clause in the contract detailing the agents fiduciary duty does non relieve him of it. The duty contains several aspects:
Duty to avoid self-dealing
A fiduciary may not lawfully profit from a conflict between his personal interest in a transaction and his principals interest in that same transaction. A broker hired as a purchasing agent, for instance, may not administer to his principal through a company in which he or his family has a monetary interest.

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The penalty for breach of fiduciary duty is loss of fee and profit and possible damages for breach of trust.

Duty to bring through confidential information
To further his objectives, a principal will commonly need to reveal a number of secrets to his agentâ€"how a lot he is willing to sell or pay for property, merchandise strategies, and the like. Such information could easily be turned to the outrage of the principal if the agent were to compete with the principal or were to sell the information to those who do. The law therefore prohibits an agent from using for his receive purposes or in ways that would injure the interests of the principal, information confidentially given or acquired. This prohibition extends to information...If you want to get a full essay, order it on our website: Orderessay



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