When agents make advances from their own funds in conducting the principal's business, the principal has:
A) no duty to reimburse the agent because the agent has assumed the burden.
B) a duty to reimburse the agent for expenses incurred for the principal.
C) a duty to reimburse the agent even if the agent is not acting within the scope of his/her authority.
D) no duty to reimburse the agent because the agent commingled fungible goods.

Question

Quizplus · Accepted Answer

Sometimes agents make advances from their own funds in conducting the principal's business. If the agent is acting within the scope of her authority, the principal has a duty to reimburse the agent for expenses incurred for the principal. Also, if the agent suffers losses while acting for the principal within the scope of the agent's authority, the principal has a duty to indemnify the agent.

When Agents Make Advances from Their Own Funds in Conducting