Asked by Mitylene Bailey on Apr 30, 2024

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An agent cannot represent both the principal and a third party in an agreement because there could be a(n) ________.

A) consortium
B) collusion
C) conflict of interest
D) conflict of laws
E) abeyance

Conflict of Interest

A situation in which a person's or entity's personal interest interferes with their ability to make impartial decisions.

Consortium

A group of companies or organizations that join together for a common purpose, often to undertake a substantial project beyond the resources of any single member.

Collusion

A secret agreement or cooperation between two or more parties for a deceitful, illegal, or fraudulent purpose.

  • Comprehend the fiduciary responsibilities agents bear towards principals and the ramifications of breaches of such duties.
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Verified Answer

MC
Mercedes CrumbleyMay 07, 2024
Final Answer :
C
Explanation :
An agent can in most situations represent and act on behalf of only one principal in an agreement.An agent usually cannot represent both the principal and a third party (who would then become another principal if represented by the same agent)in an agreement because there could be a conflict of interest.