Book Opener

Authority and Dutiesl How to define expressand implied authorityl How to define actualand apparent authorityl How to identify theduties owed by anagent to the principall How to identify theduties owed by aprincipal to the agentAgents and PrincipalsMany different factors, including the way an agency relationshipstarts, can affect an agent’s authority. No matter what type of authorityis involved, all agents owe certain duties to their principals, and all principalsowe certain duties to their agents. Moreover, agents and principalshave certain responsibilities in relation to third parties who dealwith the agency. It is important to understand the nature of agencyauthority, the duties and rights that exist between agents and principals,the responsibilities that extend to third parties, and the ways that agencyrelationships can end.Types of Agency AuthorityAgents act within the scope of their authority and contract with athird party on behalf of the principal. The contract that results is betweenKnowing the extent ofagency authority and thenature of agency dutieswill help you know yourrights and duties whenyou enter such a relationship.Understanding anagent’s liability to thirdparties will protect you ina variety of situations.l express authorityl implied authorityl obediencel good faithl duty to accountl reimbursementl indemnificationl cooperationAN AGENT’S DUTIESWhen a client engages an attorney, that attorney may beempowered to act as the agent of that client. In such asituation, what duties would the attorney have in relationto his or her client?414 Unit 4: Being an Agent and Getting a Job