A is corrent. As a fiduciary to the principal, an agent must act in the best interest of the principal. Therefore, the agent has an obligation to refrain from competing with or acting adversely to the principal, unless the principal knows and approves of such activity.
B is incorrect. In all agency relationships, except agencies coupled with an interest, the principal always has the power to dismiss the agent. However, the principal does not necessarily have the right to terminate the relationship. In certain situations the dismissed agent could sue for breach of contract.
C is incorrect. The mere right of the agent to receive a percentage of proceeds is not sufficient to constitute an agency coupled with an interest. In order to have an agency coupled with an interest, the agent must have either a property interest or a security interest in the subject matter of the agency relationship.
D is incorrect. The Statute of Frauds would not require that the described agency relationship be contained in a signed writing since it is possible for the contract to be performed within 1 year.
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