Also known as: represented persons · principal
Written by attorneys · grounded in primary & secondary sources — see below
The principal, beneficiary, partnership, corporation, or other person to whom a fiduciary owes a duty with respect to an instrument.
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Ruby Rivera serves as trustee for a trust holding negotiable notes. She endorses one note over to a bank to pay her personal loan. The bank knows of her fiduciary role. The trust as represented person asserts a claim to the proceeds because the transfer breached fiduciary duty.
Rajesh Rao, treasurer of Radiance Media, receives a customer check payable to the corporation. He deposits it into his personal account. The bank knows Rao acts as corporate officer. Radiance Media as represented person claims the proceeds on the ground that the deposit breached fiduciary duty.
Rowan Russell, a partner in a law firm, receives a settlement check made payable to the partnership. He uses it to pay his personal credit card bill. The recipient knows of Russell's partnership status. The partnership as represented person sues to recover the proceeds on breach of fiduciary duty grounds.
Robert Rivera, an investment advisor, holds client funds in a fiduciary capacity for Regina Robinson. He transfers a check representing those funds to cover his own business debt. The transferee knows of the fiduciary relationship. Regina Robinson as represented person claims the instrument proceeds because the transfer breached fiduciary duty.
Roland Rhodes, a director of Royal Crest Hotels, receives a promissory note payable to the corporation. He negotiates it to a supplier in payment of his personal obligation. The supplier knows of Rhodes's corporate role. Royal Crest Hotels as represented person asserts ownership of the note proceeds on breach grounds.
Raven Logistics acts as trustee for a pension fund. Its officer endorses a fund check to pay the officer's personal taxes. The recipient bank knows the fiduciary status. The pension fund as represented person claims the proceeds because the transaction breached fiduciary duty.
The represented person is the principal, beneficiary, partnership, corporation, or other person to whom the fiduciary owes a duty with respect to the instrument.
Supporting sources
The taker must know the fiduciary status of the person from whom the instrument is taken and that the transaction breaches the fiduciary duty owed to the represented person.
Supporting sources
Yes. The represented person must show the taker had knowledge that the fiduciary was using the instrument for personal benefit or in breach of duty.
Supporting sources
…62 S. E. 2d 198 (Ct. App. 1950). Although the franchise agreement between the defendants recites that the relationship of principal and agent is not created, in particular transactions involving third persons the law will look at their conduct and not to their intent or their words as between themselves but to their…