Asked by Julia Holsten on May 27, 2024
Verified
Which of the following is true if a principal and an agent have no agreement regarding the amount for which the principal will compensate the agent?
A) A court will assume that the agent agreed to work on a gratuitous basis.
B) The agent will be allowed to set the price that a court will enforce unless it is unconscionable.
C) The principal will be allowed to set the price that a court will enforce unless it is unconscionable.
D) A court will appoint a magistrate to set the price.
E) A court will calculate compensation according to the customary fee in the situation.
Gratuitous Basis
A voluntary action carried out without the expectation of payment or compensation.
Unconscionable
A term applied to a contract in which one party has so much more bargaining power than the other party that the powerful party dictates the terms of the agreement and eliminates the other party’s free will.
- Detail the judicial remedies available to entities involved in an agency connection when contractual commitments are breached.
Verified Answer
XA
Xandra Alexa BarraMay 30, 2024
Final Answer :
E
Explanation :
If the principal and agent have no agreement regarding compensation for the agent,a court will calculate compensation according to the customary fee in the situation.
Learning Objectives
- Detail the judicial remedies available to entities involved in an agency connection when contractual commitments are breached.