If money is commingled (funds of agent mixed with funds of the principal), a violation of duty to account occurs only if the principal can show actual harm.

Question

Quizplus · Accepted Answer

A violation of duty to account occurs whenever an agent commingles funds with those of the principal, regardless of whether harm can be shown. The agent has a duty to keep the principal's funds separate and cannot use them for personal gain or to cover expenses unrelated to the principal's business.

If Money Is Commingled (Funds of Agent Mixed with Funds