Asked by Christin Evans on May 07, 2024
Verified
An agent was engaged by a developer to arrange financing and obtained a favourable arrangement from a local lending institution. The lender gave the agent a fee for bringing in such a large account. The agent must disclose this fee to his principal.
Disclose Fee
A charge that must be paid, which is revealed or made known to a party, typically in transactions involving services or financial products.
Financing
The process of providing or securing funds necessary for a purchase, project, or investment.
Principal
The original amount of a debt or investment, exclusive of any interest or growth.
- Comprehend the duties owed by agents to their principals and the consequences of breaching these duties.
- Comprehend the judicial repercussions linked to activities conducted by agents, including engagements without proper authorization and the disclosure of proprietary information.
Verified Answer
TM
tawanda mberiMay 10, 2024
Final Answer :
True
Explanation :
The agent has a fiduciary duty to act in the best interest of the principal, which includes disclosing any fees, commissions, or benefits received from third parties related to the principal's transaction.
Learning Objectives
- Comprehend the duties owed by agents to their principals and the consequences of breaching these duties.
- Comprehend the judicial repercussions linked to activities conducted by agents, including engagements without proper authorization and the disclosure of proprietary information.
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