A principal has no duty to compensate his or her agent if:
A) it is a gratuitous agency.
B) the agent breached the duty of loyalty.
C) the agent breached the duty of obedience.
D) All these are correct.

Question

Quizplus · Accepted Answer

All the options listed are circumstances under which a principal may not have a duty to compensate an agent. In a gratuitous agency, the agent agrees to act without compensation. If the agent breaches the duty of loyalty or obedience, they may forfeit their right to compensation due to their failure to adhere to their fiduciary responsibilities.

A Principal Has No Duty to Compensate His or Her