[Lakeside Property] Kumar agreed to act as the agent of Melanie in finding a piece of lakeside property for her at a good price, and also in obtaining a loan for her with which to purchase the property. She agreed to pay him $500 for doing so. To assist Kumar in his duties, Melanie disclosed to him confidential information about her finances and debts. Kumar decided that he needed help and paid Rick $300 to look for property for Melanie. Rick told Kumar about a great deal on a piece of lakeside property that Phil had for sale. In fact, the deal was so good that Kumar purchased the property for himself. When Melanie found out about the property Kumar bought for himself, she complained to Kumar. He defended himself on the basis that he was not actually working for Melanie when he found out about the deal. At the time, he was playing golf with Phil. He also told Melanie that he had hired Rick for $300 to assist him and that he could not be held liable because he had turned the job over to Rick. He asked Melanie for reimbursement of the amount he paid Rick. Melanie fired Kumar threatening to sue him. Kumar told Melanie that he would counterclaim for the $300 owed to Rick. After he was fired, Kumar disclosed to a number of parties information regarding Melanie's spending habits which he thought were excessive.
-Which of the following is the most likely result if Kumar sues Melanie for the $300 paid to Rick?

Question

Quizplus · Accepted Answer

Kumar will likely lose if he sues Melanie for the $300 paid to Rick because as an agent, he breached his fiduciary duty to Melanie by purchasing the property for himself instead of for Melanie, which was the purpose of their agreement. This breach of duty undermines any claim he might have for reimbursement of expenses incurred while acting in that capacity.

[Lakeside Property] Kumar Agreed to Act as the Agent of Melanie