BUS 205 Lecture 46: BUS 205 Class 46
Document Summary
Must act for the benefit of the principal. May not receive outside benefits without approval of the principal. Can neither disclose nor use for her own benefit any confidential information. Is not allowed to compete with his principal within the scope of the agency business. May not act for two principals whose interests conflict. May not become a party to a transaction without the principal"s permission. May not engage in inappropriate behavior that reflects badly on the principal. An agent must obey the principal"s instructions, unless illegal or unethical. An agent with special skills is held to a higher standard because he/she is expected to use those skills. An agent has a duty to provide the principal with all information in her possession that: She has reason to believe the principal wants to know. Principal"s remedies when the agent breaches a duty. The principal can recover damages caused by the agent"s breach.
