Asked by Rosemary Rubino on May 14, 2024
Verified
Explain what is meant by an agent's fiduciary duty. Give three examples of how that fiduciary duty can be breached.
Fiduciary Duty
A legal obligation requiring one party to act in the best interest of another when entrusted with care or responsibility for their property or welfare.
Breached
The act of breaking or failing to observe a law, agreement, or code of conduct.
- Identify and explain an agent's fiduciary duties and the implications of breaching these duties.
Verified Answer
SS
Sharmila ShresthaMay 18, 2024
Final Answer :
Some examples from the text include: must disclose information, not take hidden commissions or kickbacks, always act in the principal's best interests, should not take advantage of opportunities that come through the agency position, must disclose any conflicts, can't act for two principals, can't purchase client's property being sold or sell property to principal without prior disclosure of personal interest, and can't operate in competition with the principal.
Learning Objectives
- Identify and explain an agent's fiduciary duties and the implications of breaching these duties.
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