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.
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A principal instructs their agent to reject all offers below $800,000, but later becomes unavailable when a $795,000 offer is received. The agent knows the principal is under financial pressure. What authority does the agent have?