Mary employs Tony to purchase for her a suitable site for an office complex.Tony owns a suitable site himself and sells it to Mary for the fair market value without disclosing to her that he is the owner of the land.Tony has fulfilled his duties to Mary,because he sold the property for the fair market value,even if he failed to disclose his ownership of the property.

Question

Quizplus · Accepted Answer

Tony breached his fiduciary duty to Mary by not disclosing his ownership of the property. He had a duty to act in Mary's best interests and to avoid conflicts of interest. By selling his own property to her without disclosing this fact, he put his own interests ahead of hers, which is a breach of his duty as her agent. The fact that he sold the property for fair market value does not excuse this breach of duty.

Mary Employs Tony to Purchase for Her a Suitable Site