Question: When Synthia went overseas for three months, she left her financial affairs and her share portfolio with Michael, her accountant. She gave him clear instructions

When Synthia went overseas for three months, she left her financial affairs and her share portfolio with Michael, her accountant. She gave him clear instructions to sell her 5000 BHP shares if they rose to a specific price. Michael forgot to watch the stock market each day and missed seeing that the shares had reached Synthia’s specified price. Michael sold the shares as soon as he remembered what he had been asked to do. However, the price has dropped by then, and Synthia lost the $8000 profit she could have made if Michael had done as he was told. Explain whether Synthia can obtain compensation from Michael under their principal-agent relationship.

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Yes Synthia can obtain compensation from Michael under their principalagent relationship Michael breached his fiduciary duty to Synthia by failing to follow her clear instructions to sell her BHP shar... View full answer

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