Regional Investment Corporation (RIC) hires Sam, a real estate agent, to locate investment properties for RIC. Sam learns of a warehouse available for $100,000, buys it himself, and offers it to RIC for $200,000. Most likely, Sam

a. breached the agent's fiduciary duties to the principal.

b. did nothing wrong.

c. failed to take advantage of a business opportunity.

d. set an unreasonable price based on current market value.

Question

Business

Savannah Garza

20 March, 01:37

Regional Investment Corporation (RIC) hires Sam, a real estate agent, to locate investment properties for RIC. Sam learns of a warehouse available for $100,000, buys it himself, and offers it to RIC for $200,000. Most likely, Sam

a. breached the agent's fiduciary duties to the principal.

b. did nothing wrong.

c. failed to take advantage of a business opportunity.

d. set an unreasonable price based on current market value.

+1

Answers (1)

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Travis · Answer 1

A) breached the agent's fiduciary duties to the principal.

Explanation:

To be more specific, Sam broke the agent's the duty of loyalty towards the principal. An agent must act in the best interest of the principal, not on his own best interest. The agent is getting paid for performing a task on behalf of the principal, and by taking advantage of his position, the agent has clearly breached his contract with the principal. Therefore, the principal can sue the agent and recover for damages (tort suit).