Exam 29: Relationship of Principal and Agent

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A(n) __________ is a person in a position of trust and confidence who has a duty of utmost loyalty and good faith.

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Victor negligently led Gus to believe that Brenda had the authority to act on Victor's behalf.If Brenda had no authority but Gus reasonably and in good faith relied on Brenda's apparent authority:

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The power of a gratuitous agent to affect the principal's relationship with third parties is the same as that of a paid agent.

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