TopCo Inc appointed Ethel as its agent to negotiate a building lease on its behalf with DeGroot Realty Inc.At one point in the negotiations, DeGroot says to Ethel that it will buy her a new car if the negotiations are completed by the end of the week.Ethel cannot accept the car unless she obtains the permission of TopCo.

Question

Quizplus · Accepted Answer

Ethel is acting as an agent of TopCo Inc and therefore cannot accept any gifts or incentives offered by the other party (DeGroot Realty Inc) without the permission of TopCo. This is to avoid any conflicts of interest or potential breach of duty by the agent. Therefore, Ethel must obtain permission from TopCo before accepting the car offer.

TopCo Inc Appointed Ethel as Its Agent to Negotiate a Building