________ is the right of a principal to sue an agent to recover any amount assessed against the principal for a breach of contract caused by the agent's negligence.
A)Rescission
B)Indemnification
C)Revocation
D)Contribution
E)Recoupment

Question

Quizplus · Accepted Answer

Agents enter into contracts with third parties on behalf of a principal.If a third party believes that the agent is acting with actual or apparent authority,he or she may sue the principal for any breach of contract.However,when the breach was caused by the agent's negligence,the principal has a right to indemnification.That is,when sued by a third party,a principal may sue his or her agent to recover the amount assessed to the third party if the breach of contract is the agent's fault.

________ Is the Right of a Principal to Sue an Agent