Identify Which Duty of Agent to Principal, If Any, Is

question 27

Essay

Identify which duty of agent to principal, if any, is being breached.
a. X, a valued client of the agent, requests the agent to attend a land auction and to bid on a specific piece of land if it is free and clear of encumbrances and restrictions. The agent, although not knowledgeable about auctions or real estate, attends and successfully bids on the property. However, the agent did not understand the legalese contained in a brochure given each of the bidders which stated the property the agent obtained would be subject to a restrictive covenant restricting the development and use of the property.
b. The agent is instructed to attempt to purchase a specific piece of land and is authorised to offer up to
$100,000 for same. The agent purchases the property for $85,000 and collects $95,000 from his principal, and in so doing advises the principal that the acquisition cost was $95,000.
c. The principal retains agent X due to the agent's public reputation as an outstanding tax expert and requests that the agent attend a tax inquiry to represent him. X agrees to do this but instead delegates it to a sub- agent who unsatisfactorily represents the principal.
d. The principal instructs the agent not to pay more than $50,000 for a lot. The agent commits its principal to pay $60,000 for the lot.

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Definitions:

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Judges

Judges are officials appointed or elected to preside over court proceedings, making decisions on legal cases based on the law and evidence presented.

Appellate Court

A court that has the authority to review and decide on the appeals of decisions made by lower courts, ensuring the correct application of law.

Trial Court

A court of law where cases are first tried, evidence is presented, and judgments are made.