In short
An agent owes the principal fiduciary duties: loyalty (no conflicts, secret profits or competition), obedience to lawful instructions, reasonable care, accounting for money and property, and passing on relevant information.
Key takeaways
- An agent who breaches these duties is liable to the principal for resulting losses.
- The principal owes the agent compensation, reimbursement of expenses and indemnification.
- The duty of loyalty continues for confidential information after the agency ends.
Where it's tested
REG: Business Law: Agency & Business Structures — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A principal fires an agent but does not notify a long-standing supplier who had regularly dealt with that agent. The former agent places an order with the supplier in the principal's name. Who is liable to the supplier?