If an Agent Indulges in Commingling

question 16

Multiple Choice

If an agent indulges in commingling:

• A)he probably will not be liable for loss to the principal.
• B)he bears the risk of any loss to the principal.
• C)he will not be liable for any loss to the principal if the property is not wrongfully used.
• D)he is breaching the duty to communicate information.

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Definitions:

Duty of Diligence

The obligation to perform tasks, responsibilities, or research with careful and persistent effort to avoid harm to another party.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money, property, or sensitive information.

Duty of Diligence

An obligation to exercise reasonable care and diligence in the performance of obligations, typically referring to the conduct expected of directors, officers, and professionals.

Conflict of Interest

A situation where an individual's personal interests could interfere with their professional duties or responsibilities.