Digital Technologies Inc Entered into an Agreement with Gray Under

question 34

Multiple Choice

Digital Technologies Inc entered into an agreement with Gray under which Gray agreed to act as Digital's agent for the purpose of finding new offices for Digital. Gray had never done this kind of work before and Digital knew this. He found offices that he believed would be satisfactory to Digital, and Digital entered into a five- year lease. Unfortunately, it turned out that the offices did not have air- conditioning and so could not be used in the summer, making them completely unsuitable for Digital. Gray had forgotten to ask about air- conditioning. Anyone with experience as a real estate agent would have found out about this problem. Which of the following best describes Gray's legal position?

• A) Gray breached his duty of care because he did not obtain the best possible offices for Digital.
• B) Gray did not breach his duty of care, so long as the price was fair for non- air- conditioned offices.
• C) Gray breached of his fiduciary duty because he failed to act in good faith.
• D) Gray probably breached his duty of care by failing to take reasonable care in performing his responsibilities, but Digital may be denied recovery because Digital knew that Gray had no experience in finding office space.
• E) Gray did not breach his duty of care because Digital did not specify that it wanted air- conditioned offices.

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Definitions:

Frontal Lobe

The part of the brain located in the front of the skull, responsible for complex cognitive functions, such as thinking, planning, problem-solving, and emotions.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions (such as fear and pleasure), drives (such as those for food and sex), and the formation of memories.

Cognitive Development

The process by which individuals learn and progress in their ability to think, understand, and process information as they grow.

Formal Operations

The final stage in Piaget's theory of cognitive development, characterized by the ability to think abstractly, logically, and systematically.