Identify the true statement concerning the law of principal and agent.

Question

Quizplus · Accepted Answer

This statement is true because an agent owes a duty of loyalty to his principal and should always act in the best interest of the principal. If the agent's actions conflict with the principal's interests, then it could be considered a breach of duty even if no harm is done to the principal. This duty of loyalty is a fundamental aspect of the law of principal and agent. The other statements are false. A) an agent with no express authority may still have implied authority to bind the principal into a contract with a third party. C) Agency can be created in other ways, such as by implication or operation of law. D) The principal and agent have different duties and obligations towards each other. E) Both the agent and the principal may be liable to a third party depending on the circumstances.

Identify the True Statement Concerning the Law of Principal and Agent