Question

Marshall Mechanical Contractors, Inc. wants to build a new facility on a specific piece of land in Baltimore County. The owner of Marshall contracts with Anne to act as its agent in the purchase of the property. When Anne learns of the difference between what Marshall is willing to pay for the land and what the owner is willing to sell the property for, she decides to buy the land herself and re-sell it to Marshall --(pocketing) the difference. Can Anne do this? What duties, if any, has she violated? Explain your response.

Answer 1

Answer:

No, Anne can't do this.

Explanation:

Anne is acting as an agent which means there's a principal -agency binding contract and underlies the laws and duties that Anne has to perform keeping in her mind. Anne's duty is to act for the benefit of the principal i.e. owner of Marshall mechanical contractors ,such a duty is called fiduciary duty. A duty based on trust and loyalty.

So if Anne were to go and buy the land using confidential information and acting against her duties levied on her by law ,it would be a violation of fiduciary duty .