Identify the true statement concerning the law of principal and agent.
A) Agency is only created by way of a contract.
B) The principal and his agent owe each other the same duties.
C) An agent who puts himself in a position where his interests conflict with those of his principal is in breach of his duties even though no actual harm comes to his principal.
D) An agent with no express authority can never bind his principal into a contract with a third party.
E) An agent can never be liable to the third party himself while the principal will bear no such liability.

Question

Quizplus · Accepted Answer

An agent has a duty to act in the best interest of the principal and avoid conflicts of interest. This means that even if no harm is done, the mere potential for conflict can constitute a breach of duty.

Identify the True Statement Concerning the Law of Principal and Agent