Asked by
Spencer Kettle
on Nov 10, 2024
Verified
Identify the true statement concerning the law of principal and agent.
A) Agency is only created by way of a contract.
B) The principal and his agent owe each other the same duties.
C) An agent who puts himself in a position where his interests conflict with those of his principal is in breach of his duties even though no actual harm comes to his principal.
D) An agent with no express authority can never bind his principal into a contract with a third party.
E) An agent can never be liable to the third party himself while the principal will bear no such liability.
Express Authority
Power explicitly granted to an agent or representative by a principal, through written or spoken words, to act on their behalf.
Conflict Interests
Situations where someone’s personal interests could interfere with their duties or decision-making in a professional or official capacity.
Contract
A contract recognized by law, involving two or more parties, making it enforceable through legal proceedings.
- Identify the variations in duties and obligations that agents hold towards their principals.
Verified Answer
CG
Learning Objectives
- Identify the variations in duties and obligations that agents hold towards their principals.