When an Agent's Breach of Duty Causes Harm to the Principal

question 30

Multiple Choice

When an agent's breach of duty causes harm to the principal, the principal:

• A) may deduct the loss from the amount due the agent.
• B) can bring an action in court even if compensation is due the agent.
• C) is liable to compensate the agent, even if the breach is serious.
• D) is liable to show actual damages to avoid having to compensate.

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Definitions:

Supervisors

Supervisors are individuals in an organization responsible for managing staff, overseeing work performance, and ensuring the execution of tasks and projects.

Arbitrator's Responsibility

The duty of an impartial third party to make a decision in a dispute between two parties, based on evidence and arguments presented.

Fair Hearing

A legal process where all parties involved have the opportunity to present their case in an impartial and unbiased manner.

Arbitration Hearings

Formal meetings in which an impartial arbitrator makes a decision on a dispute between two parties, outside of court.