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Which of the Following Is True of a Principal's Duty

Question 75

Multiple Choice

Which of the following is true of a principal's duty of indemnity?


A) The principal does not have to indemnify the agent for authorized payments made on the principal's behalf as the payments were undertaken in the course of the agent's work.
B) The principal must indemnify the agent for tort damages resulting from authorized conduct that the agent did not believe was tortious.
C) The principal is required to indemnify an agent even for losses resulting from the agent's negligence.
D) The principal is required to indemnify an agent for losses resulting from unauthorized acts so long as the principal did not benefit from such behavior.

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