Jim was engaged by Nick as his agent to purchase a parcel of land for him. Jim approached the owner of the land and offered to sell the land for him as his agent if he would pay a commission on the sale. The owner agreed, and the sale was arranged with Nick. Without disclosing details of the transaction, Jim collected a commission on the sale from both Nick and the landowner. Jim acted in breach of his duty to act in good faith when he obtained commissions from both parties.

Question

Quizplus · Accepted Answer

Jim breached his duty of good faith by not disclosing his dual agency and collecting commissions from both parties, which is a conflict of interest.

Jim Was Engaged by Nick as His Agent to Purchase