This website uses cookies to ensure you get the best experience on our website. Learn more

Law Outlines Agency and Other Unincorporated Businesses Outlines

Rights And Duties Between Principal And Agent Outline

Updated Rights And Duties Between Principal And Agent Notes

Agency and Other Unincorporated Businesses Outlines

Agency and Other Unincorporated Businesses

Approximately 44 pages

I hand wrote my notes for this entire class and used those notes to create this outline for use in studying for the Final Exam. ...

The following is a more accessible plain text extract of the PDF sample above, taken from our Agency and Other Unincorporated Businesses Outlines. Due to the challenges of extracting text from PDFs, it will have odd formatting:

RIGHTS AND DUTIES BETWEEN PRINCIPAL AND AGENT

  1. Duties of Principal to Agent

It is the agent who is the active party in the relationship, the party in whom the trust is placed.

An Agent is a fiduciary

  1. Duty of Exoneration and Idemnification

ADMIRAL ORIENTAL LINE V. UNITED STATES (very important)

Admiral was employed by Altantic Gulf which was an agent of the U.S. in operation of a ship.

Admiral was sued by Elkton’s Cargo owners & won but spent a lot & claims that was paid as an expense of operating as Atlantics Agent.

Atlantic tried bring in U.S. claiming U.S. Principal of whole deal & thus had to pay Atlantic for any expenses it had in defending suit but also any expenses lobbied against it by a “sub-agent”

Rule:

The Venture Is The Principals, and that, as the profits will be his, so should the expenses!

An agent, compelled to defend a baseless suit, grounded upon facts performed in his principals business, may recover from the principal the expense of his defense.

The general doctrine is that an agent may recover any expenditures necessarily incurred in the transaction of his principal’s affairs.

Rest. 3rd §8.14 comment B, recognizes a limitation on the indemnity principle:

“a principal’s duty to indemnify doesn’t extend to losses that result from an agents own negligence, illegal acts, or other wrongful conduct”

-The principal bears the burdens (of indemnity) to the extent that the ct believes to be just, considering the customs of the business & the nature of the particular relation”

A subagent is entitled to indemnity against either the immediate or the remote principal for appropriate expenses or losses.

  1. Duty to Pay Compensation

  1. Implied-in-Fact Contract

MCCOLLUM v. CLOTHIER

Rule: except where the relationship of the parties, the triviality of the services, or other circumstances indicate that the parties have agreed otherwise, it is inferred that one who requests or permits another to perform services for him as his agent promises to pay for them.

Test: under all the evidence, were the circumstances such that the Plaintiff could reasonably assume he was to be paid and that the defendant should have reasonably expected to pay for such services?

MCKNIGHT v. PEOPLES-PITTSBURGH TRUST CO.

Action for breach of contract

Subagent is an agent of the agent. A person to whom the agent delegates his own performance of an act for the principal which the agent has been empowered to perform through his own representative. (principal has to have consented)

But compensation to the subagent is based on contract...

Buy the full version of these notes or essay plans and more in our Agency and Other Unincorporated Businesses Outlines.