A principal's duty to reimburse an agent for losses the agent suffers while acting on behalf of the principal is known as the duty of .

Question

Quizplus · Accepted Answer

The duty of indemnification requires a principal to compensate or reimburse the agent for losses or damages incurred while acting on behalf of the principal. Choice A (accounting) refers to a duty to keep accurate records of transactions, Choice B (cooperation) refers to a duty to work together in good faith, and Choice D (compensation) refers to payment for services rendered, but none of these specifically relate to reimbursing an agent for losses incurred.

A Principal's Duty to Reimburse an Agent for Losses the Agent