Question

The principal has several remedies available, including ___ for breach of fiduciary duties and ___ remedies if the agent engages in misrepresentation, negligence, deceit, libel, slander or trespass. Anything that the agent obtains by virtue of the agency relationship belongs to the ___ and will be considered held in ___ for the principal. If the agent breaches the agreement, the principal also has a right of ___. Finally, if the principal is sued for the agent’s negligent conduct, the principal can sue the agent for ___ .

Fill in the blanks with words that would best complete the passage.

avoidance

contractual

abeyance

indemnification

principal

criminal

agent

constructive trust

Answer 1

The principal has several remedies available, including AGENT for breach of fiduciary duties and tort remedies if the agent engages in misrepresentation, negligence, deceit, libel, slander or trespass. Anything that the agent obtains by virtue of the agency relationship belongs to the principal and will be considered held in constructive trust for the principal. If the agent breaches the agreement, the principal also has a right of avoidance. Finally, if the principal is sued for the agent’s negligent conduct, the principal can sue the agent for indemnification.