Which of the following is a course of action for a principal if an agent is found competing with him or her?

Question

Quizplus · Accepted Answer

The principal can recover profits made by the agent in the competing venture. This is known as the duty of loyalty that an agent owes to the principal, and any profits made by the agent in a competing venture belong to the principal. The principal can also terminate the agency agreement and seek damages if the competition continues after the agency has ended. However, the principal does not have the option of buying the agent's competing venture, and cannot recover lost sales due to the agent's competing venture.

Which of the Following Is a Course of Action for a Principal