BU231 Chapter Notes - Chapter 17: Fiduciary, Independent Business
Document Summary
Defining agency: agent: a person acting for another person in contractual relations with third parties, principal: the person on whose behalf the agent acts, dependent agent: an agent who acts exclusively, or mostly, for a single principal. Independent agent: an agent who carries on an independent business ad acts for a number of principals: commission agent: one who sells on behalf of a principal to third parties and receives compensation through commissions. If an agent is serving two principals in the same transaction, then the agent is most likely not operating in good faith. Duties owed by the principal to the agent: the duty to compensate the agent for his or her effort, the dut(cid:455) to pa(cid:455) the age(cid:374)t"s e(cid:454)pe(cid:374)ses a(cid:374)d (cid:272)o(cid:373)pe(cid:374)sate for losses. The authority of the agent: actual authority: the authority given expressly or impliedly to the agent by the principal.
