The principal has a duty to indemnify the agent for losses incurred or suffered while acting as directed by the principal in a transaction which is not illegal or wrongful.

Question

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The principal is generally obligated to indemnify the agent for losses incurred while acting within the scope of their authority and in accordance with the principal's instructions, as long as the actions are legal and not wrongful.

The Principal Has a Duty to Indemnify the Agent for Losses