Asked by
Oscar Smith
on Nov 10, 2024
Verified
Which of the following is an example of an agent's breach of fiduciary duty to his principal?
A) An agent for the vendor collects a commission from the purchaser but told his principal and obtained his consent.
B) An agent for the vendor makes a profit on the transaction he negotiates for his vendor above his commission and doesn't tell his principal/vendor.
C) An agent discloses to his principal/vendor that he is giving some of his commission to the purchaser to induce the purchaser to sign the contract that the principal/vendor wants.
D) An agent negotiates a higher price than the highest sale price reasonably possible at that time.
E) The agent takes presents from the third party and passes them on to the principal.
Breach
The violation or non-fulfilment of a legal obligation, contract, or duty.
Fiduciary Duty
The responsibility to act in the best interests of another party, such as in financial matters or care, characterized by trust, reliance, and a duty of care.
Commission
A fee paid to an agent or employee for facilitating a sale or for performing a service.
- Comprehend the legal effects associated with an agent's breach of fiduciary duty.
Verified Answer
OK
Learning Objectives
- Comprehend the legal effects associated with an agent's breach of fiduciary duty.