Duties and Liabilities in Agency

Free CPA REG (Taxation & Regulation) lesson in Business Law. 15 min read, ~2,187 words.

Agent owes five duties to the principal: loyalty, obedience, care, accounting, notification (LOCAN). Knowledge is imputed to the principal once the agent knows. Principal owes the agent four duties: compensation, reimbursement, indemnification, cooperation. Indemnification covers authorized, lawful acts only, not the agent's own breach. Disclosed principal means the agent is...