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

Question

Quizplus · Accepted Answer

When there is no agreement on compensation between a principal and an agent, the compensation will be determined based on the customary fee for such services in the situation. This approach ensures fairness by aligning the compensation with what is typically expected for similar work under similar circumstances.

If There Is No Agreement Between a Principal and an Agent