Asked by Carrisa Green on May 05, 2024
Verified
Which of the following is true regarding any right of reimbursement Paolo is due from Joe?
A) Paolo is not due any reimbursement because he did not get permission from Joe before paying AAA Computers.
B) Paolo is only due 50% of whatever he paid because he did not get permission from Joe before paying AAA Computers.
C) Paolo is not due any reimbursement from Joe unless he can establish that Joe signed a written contract authorizing him to personally pay debts incurred.
D) Paolo is not due any reimbursement from Joe unless Paolo can establish by a preponderance of the evidence that AAA Computers would not have agreed to take a lesser amount.
E) Paolo is entitled to reimbursement from Joe.
Right of Reimbursement
The legal right to be repaid or compensated for expenses, losses, or liabilities incurred on behalf of another party or as a result of another's actions.
Preponderance of the Evidence
A standard of proof in civil cases, requiring that a party's evidence is more convincing than the opponent's evidence to win the case.
- Explain the entitlements and duties of principals and agents in terms of remuneration and repayment.
Verified Answer
DS
Ditte SchultzMay 09, 2024
Final Answer :
E
Explanation :
Paolo is entitled to reimbursement from Joe because, as an agent who incurred expenses on behalf of the principal (Joe) in the course of performing his duties, he is entitled to be reimbursed for those expenses, especially since they were for the benefit of Joe's business and there was no indication that Paolo acted outside the scope of his authority.
Learning Objectives
- Explain the entitlements and duties of principals and agents in terms of remuneration and repayment.