A real estate agent,by virtue of her fiduciary duty to her principal,is not allowed to buy the property being sold by her principal without full disclosure to and consent from her principal.The real estate agent does not want to disclose that she is the buyer of the property,so she forms a corporation and takes an offer to her principal from the corporation.Based on these facts,which of the following is true if the principal finds out the corporation/buyer is owned by the real estate agent and objects to the contract?
A) The court would enforce the contract because the corporation is a separate legal entity in the eyes of the law.
B) The court would enforce the contract because this is not a direct breach of the agent's fiduciary duty.
C) The court would not enforce the contract and would "lift the corporate veil."
D) The court would dissolve the corporation.
E) The court would enforce the contract, but the principal would be able to claim any profits from the agent when she took them out of the corporation.
Correct Answer:
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