An agent is liable for losses to the principal resulting from the agent's:

Question

Quizplus · Accepted Answer

An agent is expected to possess the necessary skills and capacity to perform their duty in the best interest of their principal. If the agent's actions or decisions cause loss to the principal due to incompetence, the agent is liable for those losses. Choices A and B are incorrect because an agent's personal business or capital accumulation should not affect their duty or responsibility to the principal. Choice D is incorrect because explicit agreement or contract terms between the agent and principal may determine liability, but it is not the only factor that could make an agent liable for losses.

An Agent Is Liable for Losses to the Principal Resulting