Which of the Following Is a Duty Owed by a Principal

question 4

Multiple Choice

Which of the following is a duty owed by a principal in an agency relationship?

• A) reimburse the agent for out-of-pocket expenses
• B) fiduciary duty to uphold the trust placed by the agent
• C) retroactively acknowledge authority of agents
• D) ratify all contracts within prescribed time limits

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Definitions:

Entitled

Having a legal right or a just claim to receive or do something.

Trustee

An individual or firm that holds or administers property or assets for the benefit of a third party.

Beneficiary

An individual or entity entitled to benefits or advantages from something, such as a trust, insurance policy, or a will.

Decedent's Estate

The real and personal property owned by an individual at the time of their death, subject to distribution according to their will or state laws.