Asked by
Daniel Holmes
on Nov 23, 2024
Verified
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. If the secret commission was discovered, Nick would be entitled to collect the secret commission paid to Jim by the landowner.
Secret Commission
A payment made to an individual for facilitating a transaction without the knowledge of all parties involved.
Entitled
Having a right or claim to something, often by law or through agreements.
Discovered
The act of finding something or someone that was previously unknown or hidden.
- Acquire knowledge on the basic principles that guide the approval of contracts by principals.
- Investigate the effects of individuals acting beyond their authorized capacity or sans notification.
Verified Answer
AL
Learning Objectives
- Acquire knowledge on the basic principles that guide the approval of contracts by principals.
- Investigate the effects of individuals acting beyond their authorized capacity or sans notification.