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

Question

Quizplus · Accepted Answer

The duty to indemnify or reimburse an agent for losses incurred while acting on behalf of the principal is known as the duty of indemnification. This obligation is an essential element of the principal-agent relationship and derives from the principal's duty to provide resources and support to enable the agent to carry out their duties effectively. Thus, option C is the correct answer. The other choices may be relevant duties in the principal-agent relationship, but they do not specifically refer to the obligation to reimburse the agent for losses.

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