QST LA 245 Lecture Notes - Lecture 17: The Employer, Respondeat Superior, W. M. Keck Observatory
Document Summary
To create an agency relationship, there must be: Principle (a person who has someone else acting for him) And agent (a person who acts for someone else) Who mutually consent that the agent will act on behalf of the principle and. Consent: to establish the principle must ask the agent do so something, and the agent must agree. Co(cid:374)trol: pri(cid:374)(cid:272)ipals are lia(cid:271)le for a(cid:374) age(cid:374)t"s a(cid:272)ts (cid:271)e(cid:272)ause the(cid:455) e(cid:454)er(cid:272)ise (cid:272)o(cid:374)trol over that person. Fiduciary relationship: where the beneficiary trusts another and that trustee must act in the best interests of the beneficiary. Formal agreement (they do not have to say they are the agent or principle, it is assumed) Compensation (does not need to meet standards of contract law, valid even if agent is unpaid) An agent has a fiduciary duty to act loyally for the principals benefit in all matters connected with the agency relationship. An agent may not receive profits unless the principal knows and approves.
