BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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duty of loyalty
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duty of obedience
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duty of accounting
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duty of reasonable care and skill
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Detailed explanation-1: -Agents generally have the following duties to the principal: Loyalty, Care, Obedience, and Accounting.
Detailed explanation-2: -Obedience of the agent to the principal means what? The agent must follow the instructions of the principal, regardless of personal feelings about them, as long as they do not violate state or federal laws.
Detailed explanation-3: -An agent is obligated to account for all money or property belonging to his principal that is entrusted to him. This duty compels a real estate broker to safeguard any money, deeds, or other documents entrusted to him that relate to his client’s transactions or affairs.
Detailed explanation-4: -A principal owes an agent a duty of accounting. XYZ Publishing Company. A principal must indemnify an agent for liability due to authorized acts by the agent. A principal owes his or her agent a duty to act in good faith.