BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Duty of obedience
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duty of reasonable care and skill
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duty of confidentiality
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duty of accounting
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Detailed explanation-1: -Loyalty. A duty of loyalty is one of the most fundamental fiduciary duties owed by an agent to his principal. This duty obligates a real estate broker to act at all times solely in the best interests of his principal to the exclusion of all other interests, including the broker’s own self-interest.
Detailed explanation-2: - Indemnification: Subject to the terms of the agency agreement, the principal has a duty to compensate, or indemnify, the agent for liabilities arising from the agent’s lawful and authorized acts on the principal’s behalf.
Detailed explanation-3: -Principal Agency Theory Explained The principals appoint the agents to perform specific duties. Agents are given authority to complete the duties or work assigned. The issues arise because of conflicting interests and information asymmetry between the principal and agent.
Detailed explanation-4: -An agent, in legal terminology, is a person who has been legally empowered to act on behalf of another person or an entity. An agent may be employed to represent a client in negotiations and other dealings with third parties. The agent may be given decision-making authority.