A principal who creates an exclusive agency and then competes with the agent can be held liable for the agent's lost profits or sales.

Question

Quizplus · Accepted Answer

When a principal creates an exclusive agency agreement but then competes with the agent, the principal can be held liable for the agent's lost profits or sales because the principal has violated the terms of the exclusive agency agreement, which typically guarantees the agent the sole right to sell or represent the principal's products or services within a certain territory or market.

A Principal Who Creates an Exclusive Agency and Then Competes