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. The owner of the property, who also thought that Jim was his agent, would be entitled to recover the commission he paid to Jim.

Question

Quizplus · Accepted Answer

Jim acted as a dual agent without disclosure, violating the duty of loyalty to both parties. The owner, misled by Jim's representation, has grounds to recover the commission due to breach of fiduciary duty.

Jim Was Engaged by Nick as His Agent to Purchase