Emma owns a boutique art gallery that specializes in showcasing local artists' work. She is known for her keen eye for talent and has a reputation for discovering emerging artists. One day, Emma meets Nick, a talented young artist with huge potential. Impressed by Nick's unique style, Emma offers to represent Nick and showcase his work in her gallery. They orally agree on the terms of the arrangement, including the commission percentage on sales and the duration of the representation.

However, a dispute arises when Nick's artwork becomes highly sought after, and a wealthy art collector, Emily, approaches Emma's gallery to purchase one of Nick's pieces for a substantial amount of money. Emma negotiates the sale on behalf of Nick and finalizes the transaction with Emily. After the sale, Nick discovers that the artwork was sold for a price lower than expected, and he feels like his interests were not adequately represented.

1. Identify the key elements of an agency relationship based on the case study. What roles do Emma and Nick play in this scenario?
2. Analyze the potential liabilities and responsibilities of Emma as an agent and Nick as a principle in this case.
3. Discuss the available remedies for Nick if he believes Emma breached her agency duties. What legal principles could Nick rely on to seek damages for the perceived unfairness in the sale of his artwork?