Asked by Gavin Pabst on Apr 26, 2024
Verified
An agent must act solely in the interest of his principal in all acts that would affect the principal's business.
Solely
Refers to something done exclusively by one entity or individual, without involvement from others.
Principal's Business
The main activities and operations undertaken by a business or organization to fulfill its objectives and generate revenue.
Interest
The cost of borrowing money, typically expressed as an annual percentage rate, or the income earned from lending money.
- Identify the legal responsibilities and obligations existing between agents and principals.
- Recognize the various duties an agent owes to a principal, including loyalty, obedience, and care.
Verified Answer
CN
Chizoba NnakweMay 01, 2024
Final Answer :
True
Explanation :
An agent has a fiduciary duty to act in the best interest of the principal in all matters related to the agency relationship, including acts that would affect the principal's business.
Learning Objectives
- Identify the legal responsibilities and obligations existing between agents and principals.
- Recognize the various duties an agent owes to a principal, including loyalty, obedience, and care.