A Gratuitous Agent Has a Duty of Loyalty but Is

question 66

True/False

A gratuitous agent has a duty of loyalty but is not liable for any harm caused by his careless performance.

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Definitions:

Standby Underwriting Agreement

An arrangement where an underwriter agrees to buy any unsold shares after a public offering to ensure the issuing company raises the full amount of capital.

Underwriter's Buying Price

The price at which an underwriter agrees to buy securities from the issuer to subsequently sell them to the public, usually at a higher price.

Spread

The difference between the buying price and selling price of a financial instrument, or between the bid and ask prices.

Standby Underwriting Agreement

An arrangement where the underwriter agrees to buy any of the unsold shares in a public offering at a predetermined price.