Trina and Uri do business as Value Gems. In acting on the firm's behalf in a deal with World Diamond Exchange, Trina recklessly
exceeds what Value Gems can afford to pay, causing damage to the firm. Trina is liable for breach of the duty of care. liable for breach of the duty of economic sense. liable for breach of the duty of loyalty. not liable.
Answer:The answer is Trina is liable for breach of the duty of care
Explanation:
Agency can be defined as the relationship that exist between agent his principal and the third party. The agent perform the duties of carrying out of business activities on behalf of his principal. The agent is responsible for entering into a contract with the third party on behalf of the principal. The agent has some duties to perform to the principal such as duties to give vital information concerning the business to his principal, duties not to make any secret profit, duties not to delegate duties assigned to him to another and so on.
However, as regard the question under review, Trina is liable for the breach of duty of care because, Trina is expected to perform his duties to the firm with proper amount of skill and care.In other words, Trina has to take reasonable care in reaching a deal with the third party on behalf of the firm.but Trina failed to do so by recklessly exceed what value Gems can afford to pay, thereby causing damage to the firm.
In the given problem, due to the recklessness of Trina, damage was caused to the firm. The deal was given to Trina in good faith and with the hope that the execution of the deal will be smooth and successful. However, due to recklessness, the firm incurred damages that were not in the original agreement. Thus, there is a breach of contract.
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