Which of the following statements concerning agency law is false?
　　A. The principal does not owe his/her agent fiduciary duties.
　　B. The agent owes a fiduciary duty to the principal.
　　C. The agent does not owe third parties with which the principal asks the agent to deal fiduciary duties.
　　D. The agent’s duties are by necessity based on contract law.
　　Answer:D
　　D is corrent. Although there is typically a contract between the principal and agent in an agency relationship, this is not required. For example, a principal may authorize a friend to act as his/her agent, and the agent might consent to do it as a favor.  Additionally, the agent owes the principal fiduciary duties regardless of what duties are imposed by an employment contract.
　　A is incorrect because although the agent owes the principal a fiduciary duty, the reverse is not true.
　　B is incorrect because one of the important concepts is that an agent owes the principal a fiduciary duty whether they have a contract or not.
　　C is incorrect because although agents owe the principal a fiduciary duty, they do not owe such to third parties they deal with in the capacity of the agent authorized by the principal.