When an agent breaches a duty owed to the principal, the agent may:

Question

Quizplus · Accepted Answer

When an agent's breach of duty causes harm to the principal, the principal may deduct the loss from the amount due the agent. If no compensation is due the agent, the principal can bring an action in court. If the breach of duty is serious enough, the principal may have no duty to compensate the agent even though the principal can show no actual damages. The agent may even be discharged without liability in spite of an unexpired contract.

When an Agent Breaches a Duty Owed to the Principal