Duties Owed Between a Principal and Agent

The video tutorial explains the concepts of agency law, focusing on the roles of principals and agents. It highlights that employees are generally agents of the business they work for, representing the business in various capacities. The tutorial distinguishes between employees and independent contractors, noting that the latter are agents only in limited circumstances. It outlines the duties and obligations of agents, including loyalty, care, and obedience to the employer's instructions. The video also covers sub-duties such as keeping the principal informed and accurately handling and accounting for business funds.

Who is considered the principal in agency law?

• The person who is independent of any contract

• The person who employs or contracts with an agent

• The person who is employed to represent another

• The person who acts on behalf of another

In what circumstances are independent contractors considered agents?

• Only in limited circumstances

• Never, they are always independent

• Always, like employees

• Only when they choose to be

What is one of the primary duties of an agent towards their principal?

• To act for their own benefit

• To act on behalf of the principal

• To ignore the principal's instructions

• To act independently of the principal

What does the duty of care require an agent to do?

• Prioritize their own interests

• Ignore the principal's interests

• Exercise reasonable care in their duties

• Act with complete independence

Which of the following is NOT a duty of an agent?

• Duty of loyalty

• Duty of care

• Duty to misinform the principal

• Duty to account for finances