4.3 Agent's Duties and Rights Quiz

What is one of the key duties of an agent towards their principal?

• Disobeying industry standards

• Seeking clarification

• Ignoring instructions

• Exceeding authority

What are agents bound to follow regarding the agency's subject matter?

• Customs of their trade

• Ambiguous instructions

• Unreasonable instructions

• Lawful instructions

How should agents carry out their duties?

• Without notifying the principal

• Without seeking clarification

• With reasonable care and diligence

• With negligence

What right do agents have in terms of receiving payment for their services?

• Payment regardless of the contract

• Payment only if implicitly understood

• Payment only if explicitly stated

• No right to payment

What are agents entitled to in terms of expenses incurred on behalf of the principal?

• Reimbursement for reasonable expenses

• Reimbursement for all expenses

• Reimbursement for unreasonable expenses

• No reimbursement

What does the lien serve as for agents in some cases?

• Security for unpaid fees only

• Security for unlawful claims

• Security against the principal

• Security for any claims

What is essential for both agents and principals to understand?

• Duties and rights

• Only rights

• Neither duties nor rights

• Only duties

How can agents ensure a fair and balanced relationship?

• By exceeding their authority

• By asserting their entitlements

• By disobeying industry standards

• By ignoring their duties