Tri-state Financial Corporation hires Uri, a real estate agent, to locate investment properties for Tri-state. Uri learns of a warehouse available for $100,000, informs Tri-state, and makes an offer of $90,000 on Tri-state's instruction. The offer is rejected. Uri

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

B. did nothing wrong.

C. failed to take advantage of a business opportunity.

D. made an unreasonable offer based on current market value.

Question

Business

Meadow Hoover

16 September, 18:50

Tri-state Financial Corporation hires Uri, a real estate agent, to locate investment properties for Tri-state. Uri learns of a warehouse available for $100,000, informs Tri-state, and makes an offer of $90,000 on Tri-state's instruction. The offer is rejected. Uri

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

B. did nothing wrong.

C. failed to take advantage of a business opportunity.

D. made an unreasonable offer based on current market value.

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Answers (1)

Know the Answer?

Aspen Pittman · Answer 1

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

Explanation:

Uri breaks the agent's duty to obey the principal. An agent must act in the best interests of the principal and not in the best interests of his or her own. The agent is paid to act on behalf of the principal, and by taking advantage of his position, the agent expressly terminates his contract with the principal. Therefore, the principal can sue the agent and recover damages.