Chapter One
Agency
Review
Questions 6-10
6. What duties does an agent owe the
principal?
Duty
to perform (if compensated)- the duty to act in the best interests of the
principal requires the agent to use his due diligence and skill to negotiate
terms of a transaction on behalf of his principal with a third party to the
greatest advantage of his principal in the circumstances. The example of a real estate agent for the
seller or buyer must act in the best interest of the principal in which they
work for.
Duty
to act with reasonable care - An agent is obligated to use reasonable care and
diligence when pursuing the principal's affairs. The standard of care expected
of a buyer's or seller's real estate broker is that of a competent real estate
professional. By reason of his/her license, a broker is considered to have
skill and expertise in real estate matters superior to that of the average
person.
Fiduciary
duty – a real estate broker is held by law to owe specific duties to his/her
principal (the person who they are representing), in addition to duties or
obligations set forth in the listing agreement, buyer representation agreement,
or other contract of employment.
Duty
to notify – An agent must disclose to the principal all known relevant and
material information that pertains to the scope of the agency.
Duty
of loyalty - Obligates a real estate broker to act at all times, solely in the
best interests of the principal, excluding all other interests, including that
of the broker.
7. Under what circumstances may a
principal be liable for torts committed by his or her agent?
The
principal is liable for the torts of the agent which are committed within the
scope of the authority.
EXAMPLE:
Mike, the owner of a produce business, directs Alan, his employee to make a
delivery to a customer using the company truck. Mike knows that the truck’s brakes
do not work properly. Alan does not know this and has no reason or duty to know
it. Peter, a pedestrian, is injured when the truck’s brakes fail while Alan is
driving the truck to make the delivery and attempts to stop at a stop sign. Mike
is subject to the liability of Peter. Alan is not subject to the liability
of Peter.
8. What is Respondent Superior?
Describes
the principle that an employer is responsible for most harm caused by an
employee acting within the scope of employment.
EXAMPLE:
A surgical technician had stolen a surgical pain medicine and replaced it with
used syringes filled with saline, ongoing for a period of several months. The hospital where she worked is being sued
under respondeat superior for permitting this to occur, despite their lack of
awareness of the employee’s behavior.
The lawsuit claims that the hospital “knew or should have known that the
public could suffer foreseeable harm if its employees, agents, independent
contractors and/or servants, including [the surgical technician], failed to
perform their assigned duties in a safe, skillful and competent manner”. Despite the fact that the employee acted
outside of the permissible behavior of employees of the hospital, and showed
criminal and negligent behavior, the employer is still liable for those
actions.
9. Who are the agents for a general
partnership?
Each
general partner is deemed the agent of the partnership. Therefore, if that
partner is apparently carrying on partnership business, all general partners;
they can be held liable for their dealings with third persons.
10. Who are the agents for a
corporation?
The
agents of the corporation are generally considered to be the board of
directors, officers or other persons the corporation authorizes to act on its
behalf.
No comments:
Post a Comment