Asked by Hannah Strength on May 20, 2024
Verified
A principal need not compensate his agent if:
A) there was no agreement on the amount of compensation the agent was to receive.
B) the agent has committed a breach of a fiduciary duty.
C) there is no market price for the agent's services.
D) the agent is a special agent.
Fiduciary Duty
The legal obligation of one party to act in the best interest of another party, such as the responsibility of a trustee to safeguard the interests of the beneficiaries.
Compensation
Payment or rewards provided in exchange for services or to cover losses or damages.
Special Agent
A federal or state investigator or detective who conducts criminal investigations and has specific regulatory or enforcement powers.
- Identify the principal's duties towards the agent, including indemnification and reimbursement.
Verified Answer
CS
Carley ShererMay 20, 2024
Final Answer :
B
Explanation :
A principal usually need not compensate an agent who has materially breached the agency contract or has committed a serious breach of a fiduciary duty.
Learning Objectives
- Identify the principal's duties towards the agent, including indemnification and reimbursement.