The principal has a duty to indemnify the agent for losses incurred or suffered while acting as directed by the principal in a transaction which is not illegal or wrongful.

Question

Quizplus · Accepted Answer

According to the law of agency, the principal is responsible for reimbursing the agent for any losses incurred or suffered while acting within the scope of the agency relationship, as long as the transaction is not illegal or wrongful.

The Principal Has a Duty to Indemnify the Agent for Losses