Question $16(1\mathrm{.}25$ points$)$

If an agent makes agreements on behalf of the principal in a fiduciary relationship of trust and confidence, is the principal liable?

No$,$ because although the principal is a fiduciary, an agent is not a fiduciary. Yes, because an agen is a fiduciary only if the principal and agent agreed by written contract that the agent is a fiduciary.

No$,$ because an agent is a fiduciary only if the principal and agent agreed by written or oral contract that the agent is a fiduciary.

No$,$ because an agent is only a fiduciary to the principal if a transaction in excess of $$10,000$ is involved.

Yes, because an agent is a fiduciary to the principal.