Which of the following is NOT an obligation that the agent owes to the principal? a. Enable JS and turn off any ad blockers. Under common law, an insurance agent is required to use the degree of care necessary to protect the interests of the insured. If carelessness causes injury or damage to the insured, the agent may be held responsible for the injury or damage.
Of course, the agency is also responsible for the negligent or fraudulent acts of its employees and attorneys. An agent who uses the assets entrusted to him by the director to obtain benefits for himself and without the director's consent violates his duty not to obtain secret benefits. For example, if your landlord entrusts a real estate agent with the keys to a property to be listed on the stock exchange while the owner is abroad, and the real estate agent rents the property to a third party and receives and keeps the rent without the owner's consent, among other things, the real estate agent will fail, among other things, to his obligation not to obtain secret benefits. Use of Information or Knowledge An agent who acquires information or knowledge whose collection or discovery was used by the principal, or who has otherwise acquired it for the use of his principal must not use it for his personal benefit. For example, acting on behalf of a buyer, a real estate agent seeks a property to invest in a specific building specified by the director and learns that a property in that building is being offered for sale below the market price.
If the real estate agent makes use of this information, which he is designated to obtain on behalf of the buyer, and acquires that property on his own without disclosing it to the buyer and makes a profit by reselling it, the real estate agent will breach, among other things, his fiduciary duty not to obtain secret benefits. Check if the person in question currently has a license and license details Useful information before becoming a real estate agent Useful information and advice for consumers. Nowadays, liability for intentional torts is attributed to the principal if the agent acts to promote the principal's business. It imposes a fiduciary duty: the duty of an agent to always act in the best interest of the principal, to avoid self-negotiation.
A common form of express authority is that granted by the principal by contract to the agent, verbally or in writing, communicating it to the third party. It makes sense for an agent to be responsible for their own grievances; it would be a bad social policy if a person could evade non-contractual liability through their own fault simply by acting as an agency. The death of an agent also terminates the authority of the sub-agents he has appointed, unless the director has given his express consent to that your appointment remains valid. In addition to the professionalism perceived by an agent, established treatment or a special relationship with an insured can affect the agent's degree of legal responsibility to the insured.
If unforeseen circumstances arise and it is not possible to contact the principal to know what his wishes would be, the proxy can do what is reasonably necessary to prevent his principal from suffering substantial losses. The reputation of an agent is no less valuable than that of a principal, so the agent has no obligation to continue working for someone who tarnishes it. On the other hand, certain tasks entrusted to agents are not subject to the director's control; for example, a lawyer may refuse to allow a client to dictate tactics in court. Likewise, if the agent or principal loses the ability to enter into an agency relationship, it is suspended or terminated.
It is not easy to determine what constitutes the scope of employment; the modern tendency is to hold the principal responsible for the conduct of an agent if it was foreseeable that the agent could act as he did. In short, the implied guarantee is that the agent is empowered to make a deal, not that the principal will necessarily fulfill the contract once the deal is closed. The director's wishes may have been ambiguously expressed or may be broad enough to confer discretion on the agent. Failure to warn an agent that traveling to a particular neighborhood required by the job can be dangerous (a fact that the agent is unaware of but is known to the principal) could, under common law, subject the director to a lawsuit for damages if the agent is injured while in the neighborhood doing her job.
Generally, an agent has a duty to act as a reasonably prudent agent would under the same or similar circumstances...
