If the Agent Is Disloyal to the Principal

question 44

Multiple Choice

If the agent is disloyal to the principal:

• A) the agency agreement automatically terminates and the principal may rescind the transaction.
• B) the principal has the right to collect any actual damages sustained as a result of the agent's disloyalty.
• C) the principal has a right to recover any profits earned as a result of his agent's disloyal conduct.
• D) All the above are correct.

---

Definitions:

Traditional Expectations

The established norms and roles that individuals are anticipated to conform to by virtue of their cultural, social, or family positioning.

Minangkabau Society

A matrilineal society in West Sumatra, Indonesia, characterized by female inheritance and property rights.

Matriarchal

A social system or family structure where the female, especially the mother, has the central role of authority and decision-making.

Economic

Relating to the production, consumption, and transfer of wealth within a society or country.