Law for Business Mr. Bernstein Notes, pp , Agency January 12, 2015

Law for Business Mr. Bernstein Agency One person is authorized to alter another’s legal relationships Authority is granted to Agent, who then contracts with customer or vendor, creating a binding contract on behalf of owner or corporation 2 Agent Owner or corporate entity Customer or Vendor

Law for Business Mr. Bernstein Agency Consensual at all times by both parties Agents must understand issues Agency can be established with or without contract, or through ratification 3

Law for Business Mr. Bernstein Agents have Fiduciary Duty Must act in the principal’s best interests Duty of loyalty and obedience – no secret profits and must follow instructions Duty of Reasonable Care Duty to Communicate Duty of Confidentiality Duty of Accountability No Commingling Use of Trust Accounts 4