Wilson engages Ruth to sell Wilson’s antique walnut chest to Harold for $2,500. The next day, Ruth learns that Sandy is willing to pay $3,000 for Wilson’s chest. Ruth nevertheless sells the chest to Harold. Wilson then discovers these facts. What are Wilson’s rights, if any, against Ruth?
Duty to inform obligates the agent to give all the material information that he knows regarding the subject matter to the principal. Breach of this duty can be considered as a breach of contract based on the material fact.
In this case, Individual R can be held responsible for breach of duty as Individual R has not provided the information to the principal. This information could have changed the deal and resulted in higher profit.
No such liability will be raised against Individual R if there exists a reason for Individual R to believe that the deal would not change because of this withheld information.
In this case, Individual W may or may not claim the right of duty to inform against Individual R. Individual R,as an agent, has the duty to inform Individual W about all the material facts regarding the subject matter unless Individual R has reason to believe that these facts would not make any changes to the deal.
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