Ella agrees to act as Fab's agent in settlement negotiations with Global Insurance Company. Ella works out a profitable compromise for Fab, but deposits the company's payment in her own account and refuses to give it to Fab. Fab files a suit against Ella. What remedies might the court impose?
What will be an ideal response?
Possible remedies include the normal contract and tort remedies¾in this problem for breach of contract and conversion. Also, when an agent breaches his or her duty to the principal by retaining benefits that belong to the principal, which is what occurred here, a court can impose a constructive trust and declare that the agent holds the benefits on behalf of the principal. A constructive trust may also be imposed when an agent retains profits that belong to the principal or takes advantage of the agency to obtain property the principal wants to buy. In this question, of course, the benefit was the insurance company's payment, which was supposed to be paid to Fab, the principal, but which Ella, the agent, withheld.
You might also like to view...
Employees are likely to see an adaptive change as
A. highly threatening. B. moderately threatening. C. somewhat threatening. D. least threatening. E. totally unacceptable.
Answer the following statements true (T) or false (F)
The two primary features of naturally rewarding activities that have been studied create feelings of competence and feelings of purpose.
Which of the following is not true regarding specific bond provisions?
a. Firms might issue bonds based only on their credit worthiness as an entity. b. Particular collateral might back up bonds issued by a firm. c. Unsecured borrowing might carry senior rights or subordinated rights in the event of bankruptcy. d. Senior debt holders have a higher priority for payment in the event of bankruptcy than subordinated (junior) unsecured lenders. e. Common stockholders have a higher priority than unsecured bondholders for payment in the event of bankruptcy.
Which of the following measures helps to establish boundaries in which a report will be researched and prepared??
A) ?Sticking to the maximum number of pages allowed B) ?Using the what, why, when, where, and who questions C) ?Using a single secondary source for all data D) ?Gathering as much information as possible from primary research