Question

Angela owns and operates a law firm. Toby owns and operates a consulting business through which he advises law firms on the selection of computer systems. Angela hires Toby to advise her on the computer system best suited for her law practice. Which of the following statements are correct concerning the relationship between Angela and Toby?
O If Toby dies, the agency is terminated through operation of law.
O Toby cannot engage in any activity that is a conflict of interest with Angela
O All of the other answers are correct.
O Toby owes a fiduciary duty to Angela.

Answer 1

Answer: Option 3

Rationale: Since the above relationship is an agent and principal relationship. Toby is obligated to act on the interests of Angela and this is called a fiduciary duty. This also involved conflict of interest stating that Toby should not work with a competitor or any interest that does not align with Angela's interests.

According to the operation of law, death can be a reason for the termination of the relationship between Angel and Toby.