The Indemnity a Principal Ordinarily Owes to an Agent Extends

question 11

Multiple Choice

The indemnity a principal ordinarily owes to an agent extends to:

• A)All payments made, expenses incurred and liabilities assumed as a necessary result of carrying out the instructions of the principal
• B)All of the agent's business expenses.
• C)All of the expenses and liabilities of the agent however they arise.
• D)All payments made and expenses and outlays incurred while the agent is carrying out the instructions of the principal, but not liabilities to third parties.

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Definitions:

Government

The organization or system through which a community, state, or nation is ruled, and which sets and enforces laws and policies.

Tax

A mandatory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

Burden

A heavy load, often referring to the impact or cost of something on individuals or society.

Buyers

Individuals or entities that purchase goods or services for personal use or for the purpose of reselling.