Emma contracts with Luke to locate and purchase for her a suitable site for a motocross track. Luke owns a huge parcel of land himself and sells it to Emma at fair market value without disclosing to her that he is the owner. Luke has not breached his fiduciary duty to his principal if it was a fair price.

Question

Quizplus · Accepted Answer

As an agent, Luke has a fiduciary duty to act in the best interests of his principal, Emma, which includes disclosing any personal interest he has in a transaction. Failure to disclose that he is the owner of the land constitutes a breach of this duty, regardless of the fairness of the price.

Emma Contracts with Luke to Locate and Purchase for Her