AgencyIntermediateCalifornia Exam

An agent who acts beyond the scope of their authority may be liable for:

ANothing, as long as the deal closes
BBreach of fiduciary dutyCorrect
CAntitrust violations
DTax evasion

Why Breach of fiduciary duty Is Correct

Answer B: Breach of fiduciary duty

An agent who exceeds their authority can be liable for breach of fiduciary duty and may be personally liable for any resulting damages to the principal.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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