A Principal Has a Duty of Compensation

question 117

Multiple Choice

A principal has a duty of compensation:

• A) in all agency arrangements.
• B) only in agency arrangements that expressly provide for compensation.
• C) in all agency arrangements, except for "gratuitous" agency arrangements.
• D) to pay the agent before he or she performs agency duties.
• E) to pay the agent, even where the agent failed to produce the required result under a contingency fee agreement.

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Definitions:

Expected Stream

The anticipated sequence or flow of specific items or events, often used in the context of revenue or income over time.

Investment

Investment involves allocating resources, usually financial assets, with the expectation of generating an income or profit over time.

Interest Rate

The fee, represented as a percentage of the principal amount, levied by a lender on a borrower for the utilization of assets.

Yield Income

Income generated from investments that pay out returns, such as dividends from stocks or interest from bonds.