A principal has a duty to reimburse or indemnify the agent for payments made or expenses incurred even if incurred outside the agent's actual authority.

Question

Quizplus · Accepted Answer

A principal is generally not obligated to reimburse or indemnify an agent for expenses incurred outside the agent's actual authority unless the principal ratifies the agent's actions or there is an agreement to do so.

A Principal Has a Duty to Reimburse or Indemnify the Agent