BLE Quiz 3 2.0

Agency Relationship

The right to act on behalf of the principal.

Authority

The actual (expressed or implied) permission to act on behalf of the principal. Apparent authority is when the act was reasonably authorized.

Fiduciary Duty

The duty of an agent to act loyally for the principal's benefit.

Duty of Loyalty

The obligation to avoid conflicts of interest with the principal and to keep confidential information.

Conflicts of Interest

Situations where an agent may not seek benefits from third parties or engage in self-dealing.

Confidentiality

The requirement for an agent not to use or disclose confidential information.

Agents Duties

Include obeying instructions, acting with care and skill, providing information, record-keeping, and accounting.

Principal Duties

The responsibilities to compensate, reimburse, and indemnify the agent for losses.

Termination by Act of the Parties

Termination can occur at a specific time or event, upon accomplishment of a result, by mutual agreement, or at the option of either party (revocation by principal, renunciation by agent).

Termination by Operation of Law

Termination due to events like the death of an individual principal, death of agent, loss of capacity, or occurrence of specific circumstances.

Power of Sale

Authorization in a secured loan agreement for the lender (agent) to sell the property if the borrower (principal) defaults.