According To The Text, It Says That “Liability For Contracts

844 WordsMay 3, 20174 Pages
According to the text, it says that “liability for contracts formed by an agent depends on how the principal is classified and on whether the actions of the agent were authorized or unauthorized. Principals are classified as disclosed, or undisclosed” (Roger, LeRoy, & Miller). “A partially disclosed principal is a principal whose identity is not known by the third party know that the agent is or may be acting for a principal at the time the contract is made” (Roger, LeRoy, & Miller). “An undisclosed principal is a principal whose identity is totally unknown by the third party, and the third party has no knowledge that the agent is acting in an agency capacity at the time the contract is made” (Roger, LeRoy, & Miller). In my paper, I will…show more content…
“An agent’s behalf of and be subject to the control of the principal, act within the scope of authority or power delegated by the principal, discharge the duties with appropriate diligence, and avoid conflict between personal interests” (U.S. Legal). Some other obligations of an agent include not to acquire any material benefit from a third party in connection with a transaction conducted or through the utilization of the person’s positions as an agent. Additionally the act with care, competence, and activity objectively exercised by agents in similar circumstances, and to comply with all lawful authorizations received from the principal and people designated by the principal concerning agent’s actions on behalf of the principal, etc. The agent owes the principal five obligations and they are performance, notification, adhesion, compliance, and accounting and from the text, it explicated each one. “Performance is an implied condition in every agency contract is the agent’s agreement to use agreement to use reasonable diligence and skill in performing the work” (Roger, LeRoy, & Miller). “Notification is an agent required to notify the principal of all matters that come to her or his attention concerning the subject matter of the agency, and adhesion is one of the most fundamental obligations in a fiduciary

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