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In the case of a gratuitous agency (one in which the agent agreed to perform a service for the principal for free), which statement about

In the case of a "gratuitous agency" (one in which the agent agreed to perform a service for the principal for free), which statement about the agent's duty of care is correct? Question 17 options: The gratuitous agent owes the principal the same duty of care as would a paid agent, namely the "ordinary care" standard. An agent always owes the highest duty of care, loyalty, and competence to the principal, to a degree which exceeds the "ordinary care" standard. Because the agent did not receive any valuable consideration for his promise, no binding contract has been formed, thus the agent/promisor owes no duties whatsoever to the promisee. The gratuitous agent owes a duty of care to the principal, but it is relaxed, such that she is expected only to avoid acts of "gross negligence

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