Chu, an agent for Delivery Corporation, rents a truck from Equipment Inc. without revealing that he is acting on Delivery's behalf. When Delivery fails to pay for the use of the vehicle, the lessor collects the unpaid amount from Chu by judicial process. Entitled to be indemnified is

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Chu is entitled to be indemnified because he acted on behalf of Delivery Corporation without disclosing his agency relationship. When acting as an agent, if the agent incurs expenses or liabilities while performing duties for the principal (in this case, Delivery Corporation), the agent is entitled to indemnification from the principal for those expenses or liabilities.

Chu, an Agent for Delivery Corporation, Rents a Truck from Equipment