If a Principal Directs the Agent to Commit a Tort

question 1

True/False

If a principal directs the agent to commit a tort or knows for a fact that the agent carrying out his instructions could cause someone harm, then the principal is liable.

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Definitions:

Compounded Annually

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Pay Today

An immediate payment requirement, often referring to the upfront cost or investment needed in a transaction or financial deal.

Interest Rate

The percentage of an amount of money charged by a lender to a borrower for the use of money over a period of time.

Nominal Annual Interest

Nominal annual interest is the stated interest rate associated with a loan or investment, not accounting for compounding or inflation effects within a specific year.