Which of the Following Is True Regarding the Status of an Agent

question 128

Multiple Choice

Which of the following is true regarding the status of an agent as a fiduciary?

• A)Although a principal is a fiduciary,an agent is not.
• B)An agent is only a fiduciary if the principal and agent agreed in a written contract that the agent would be a fiduciary.
• C)An agent is only a fiduciary if the principal and agent agreed by written or oral contract that the agent would be a fiduciary.
• D)An agent is only a fiduciary to the principal if a transaction of $10,000 or more is involved.
• E)An agent is a fiduciary of the principal.

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Definitions:

Voidable Contract

A contract that appears valid and enforceable on the surface but may be declared void by one of the parties based on certain grounds, such as fraud or coercion.

Undue Influence

A situation where an individual is able to persuade another's decisions due to the relationship between the two parties, often leading to an unfair advantage.

Mutual Mistake

A contract law principle where all parties have a common but incorrect belief about a material fact, which can void the agreement.

Duty of Disclosure

The legal obligation to provide all relevant information in a transaction or legal proceeding, ensuring fairness and transparency.