Question

Home Development Company (HDC) contracts with Stella to act as their agent to broker the purchase of approximately 100 acres of property owned by various individuals. HDC intends to build a planned residential community on the 100-acre site. Stella secretly buys 10 acres of the 100 acre property with her sister, Tina (who is the only named buyer). Tina then sells the 10 acres to HDC for a big profit. Stella's actions are: Group of answer choices

Answer 1

Answer:

duty of loyalty

Explanation:

The duty of loyalty is probably the most fundamental duty that an agent must respect since the agent should always act in the best benefit of their principal. The agent should also avoid any type of conflict of interest between himself/herself and the principal. In this case, Stella benefited from private information and instead of making her principal purchase the land for a cheaper price, she made her sister do it and then resell it for a large profit.