Understanding Agents

Principal

The law states that one who is a principal has a fiduciary duty owed to him by an agent. The agent receives this duty by being appointed by the principal. The purpose behind the appointment is for the agent to carry out special tasks on hand in which they are specialized.

In return for a fee, the agent must perform his duties to the best of his ability in order to satisfy not only his principal, but also the guidelines of the law. The law that describes the ethical standards and duties of an agent towards his principal are located within the State laws as well as previous court opinions.

Power of Attorney

Power of Attorney is granted through the consent of the principal given to the agent. The agent has the ability to be able to perform various duties which do not conflict with the interests of the principal since there is a fiduciary obligation. The agent must abide specifically to the terms set forth in the contract.

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