Question

Jamie authorizes Amy to sell his house, but does not clarify about the compensation payable to Amy. What amount should be paid to Amy when she sells Jamie's house?

a. Nothing, since agency relationships are assumed to be gratuitous unless an agreement specifies compensation
b. An amount to be determined by arbitration
c. A fair value for the services performed
d. Ten percent of the sales price

Answer 1

If Jamie authorizes Amy to sell his house without clarifying compensation, Amy should not expect to be paid anything.

Step-by-step explanation:

In this case, since Jamie did not specify any compensation for Amy, the correct answer would be option a. Nothing, since agency relationships are assumed to be gratuitous unless an agreement specifies compensation. Agency relationships are generally considered to be voluntary and unpaid, unless otherwise agreed upon. Therefore, Amy should not expect to be paid any amount for selling Jamie's house.