Trudy would breach the duty to inform if she failed to tell her principal:
A) a debtor of her principal has become insolvent.
B) property her principal authorized her to sell at $50,000 could be sold for $53,000.
C) a customer of her principal has become insolvent.
D) All of these.

Question

Quizplus · Accepted Answer

Trudy has a duty to inform her principal of any material information that could affect their business interests. A debtor or customer becoming insolvent and the ability to sell property for a higher price are both material information that could impact the principal's business decisions. Therefore, Trudy would breach her duty to inform if she failed to disclose any of these facts to her principal.

Trudy Would Breach the Duty to Inform If She Failed