When an Agent Suffers Losses in Conducting the Principal's Business,the

question 55

Multiple Choice

When an agent suffers losses in conducting the principal's business,the principal's obligation is to ________ the agent.

• A)indemnify
• B)renounce
• C)reimburse
• D)compensate

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Definitions:

Disaffirmed Contract

A contract that has been declared void or invalid by one of the parties involved, often due to reasons like lack of capacity or legality.

Ratified

Confirmation or approval of an act or agreement that was not initially authorized by the party in question, making it legally binding.

Reasonable Time

A time frame which is fair and appropriate under the circumstances, often interpreted within the context of contract performance.

Ratify

To formally approve or confirm an agreement, contract, or decision, often after the fact, to make it officially valid and binding.