A potential buyer asks an agent representing the vendor about the vendor's minimum acceptable price. How should the agent respond?
Correct Answer
C) Give general price guidance without revealing the vendor's confidential minimum
The agent must maintain confidentiality regarding the vendor's specific instructions while still providing appropriate guidance to facilitate the sale. Revealing the exact minimum price would breach the fiduciary duty of confidentiality owed to the principal.
Why This Is the Correct Answer
The vendor's minimum price is confidential information the agent holds for the principal. The agent can still give buyers honest, evidence-based price guidance, as long as it does not disclose the vendor's instructions.
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