BUSAD 120 Lecture Notes - Lecture 28: Reasonable Person, Fiduciary
Document Summary
Duties to the principal to agent - still exist even with a gratuitous agent relationship. If no agreed compensation, must pay customary unless is a gratuitous agency. Principal"s duty to reimburse agent"s reasonable expenses. Ex. delivering a car to a principal. Principal might have to pay expenses such as gas, hotel stays, etc that the agent incurred during delivery even if they are not being paid. Safe work environment or warn of risks and dangers involved. Principal"s duty to indemnify the agent for losses. Must indemnify for losses or damages that the agent did not cause. If the agent is doing what they were told to do and then gets sued for it you must step in and defend the lawsuit. Fiduciary duty on agent - which the the highest duty recognized by law. Agent must subordinate his self interests to those of the principal. Agent must place principal"s interests above their own.
