BLAW 2301 Chapter Notes - Chapter 28: Fiduciary, Pome, W. M. Keck Observatory
Document Summary
Principal person for whom an agent is acting. Principals have substantial liability for the actions of their agents. Agent the person so who is acting in behalf of a principal. In an agency relationship, the agent agrees to perform a task and for under the control of the principal. They mutually consent that the agent will act on behalf of the principal: establish consent, the principal must ask the agent to do something, and agent must agree. Agent will be subject to the principal"s control o. Principals are liable for the acts of their agents because they exercise control over that person. They create a fiduciary relationship (involving confidence or trust: one of trust: trustee acts for the benefit of the beneficiary. Always puts the interest of the beneficiary before his own. Must act in good faith, doing what is best for the beneficiary. All 3 elements (consent, control, and fiduciary duty) are necessary to create an agency relationship.
