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

Question

Quizplus · Accepted Answer

A principal does not have a duty to reimburse or indemnify the agent if the payments made or expenses incurred were (1) outside the agent's actual authority, (2) from losses resulting from the agent's negligence, or (3) from losses resulting from the agent's intentional tort or illegal act.

A Principal Has a Duty to Reimburse or Indemnify the Agent