A principal owes a duty to indemnify an agent for any losses the agent suffers because of the principal's conduct.

Question

Quizplus · Accepted Answer

It is a well-established principle of agency law that a principal is responsible for indemnifying its agents for any losses they may suffer as a result of carrying out the principal's instructions or being otherwise engaged in the principal's business. This duty of indemnification arises from the fact that the agent acts on behalf of the principal and, in doing so, assumes risks and incurs liabilities that would not otherwise exist. As a result, the principal must bear the costs of those risks and liabilities, including any losses suffered by the agent as a result of the principal's conduct.

A Principal Owes a Duty to Indemnify an Agent for Any