Which of the Following Is False Regarding a Principal's Duties

question 81

Multiple Choice

Which of the following is false regarding a principal's duties to an agent?

• A)An agent can sue the principal if the principal does not fulfill the duties owed to the agent.
• B)In a successful suit against a principal,an agent is entitled to contract remedies but not tort remedies.
• C)If a principal has failed to fulfill the duties owed to the agent,the agent can refuse to act on behalf of the principal until the failure is remedied.
• D)A principal has a duty to compensate his or her agent for services provided unless the parties have agreed that the agent will act gratuitously.
• E)A principal has a duty to reimburse and indemnify the agent for authorized expenditures.

---

Definitions:

Letter of Requisition

A formal written request, often used in official or professional settings, to demand the provision of goods, services, or information.

Formal Demand

A formal request, usually in writing, requiring a person or entity to fulfill a legal obligation or payment.

Payment

The act of transferring money or its equivalent in exchange for goods or services.

Commission

A fee or percentage awarded to salespeople, agents, or brokers for their services in facilitating a sale or transaction.