If There Is No Agreement Between a Principal and an Agent

question 4

Multiple Choice

If there is no agreement between a principal and an agent regarding the amount for which the principal will compensate the agent,which of the following statements is true?

• A)The agent will be allowed to set the price which will be enforced unless it is unconscionable.
• B)The court will appoint a magistrate to set the price.
• C)The principal will be allowed to set the price which will be enforced unless it is unconscionable.
• D)Compensation will be calculated according to the customary fee in the situation.
• E)It will be assumed that the agent agreed to work for free on a gratuitous basis.

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Definitions:

Will

A document executed with specific legal formalities that contains a person’s instructions about the disposition of his property at his death.

Transferred

In the context of property or legal rights, refers to the act of moving ownership, authority, or responsibility from one party to another.

Validly Executed

A legal term indicating that a document has been signed and carried out according to the required legal formalities.

Warehouse Receipt

A document that provides proof of ownership of commodities (e.g., goods or merchandise) stored in a warehouse.