EstatePass
Agency PracticeProfessional ConductHARD

An agent discovers their principal is engaging in misleading conduct regarding property disclosures. The agent has advised against this but the principal continues. What is the agent's best course of action to protect themselves legally?

Correct Answer

C) End the agency agreement and keep a record of the reasons for ending it

When a principal engages in conduct that could expose the agent to legal liability or professional sanctions, despite proper advice, the agent should terminate the agency relationship and document their reasons. Continuing to act could make the agent complicit in misleading conduct under consumer protection laws.

Answer Options
A
Keep acting for the principal and keep a written record of the advice given
B
Report the principal to the fair trading regulator and keep acting as normal
C
End the agency agreement and keep a record of the reasons for ending it
D
Keep acting after getting the principal's written indemnity for any future claims

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Related Topics & Key Terms

Key Terms:

misleading conductagency terminationAustralian Consumer Lawprofessional liabilityfiduciary duty
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