The concept of conflict of interest as it relates to the law of agency includes which of the following?
A) An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents.
B) An agent may not represent her principal in a transaction in which the agent has a personal interest.
C) An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency.
D) All of these.

Question

Quizplus · Accepted Answer

Each choice (A, B, and C) accurately describes a scenario involving a conflict of interest in the context of agency law. Agents must have their principals' informed consent to engage in conflicting activities (A), cannot represent a principal in transactions where they have a personal interest without disclosure and consent (B), and must have approval from all involved principals to act on behalf of adverse parties in a transaction (C).

The Concept of Conflict of Interest as It Relates to the Law