What is one of the principal's remedies for breach of agency contract or in tort for harm done by an agent?

What are the remedies available to the principal?

What is an example of a principal agent problem?

Examples of Principal-Agent Problem

Voters (principal) vs. politicians (agent) Financial institutions (principal) vs. rating agencies (agent)

What are the remedies for breach of agency contract?

An agency agreement is a legal contract creating a fiduciary relationship whereby the first party ("the principal") agrees that the actions of a second party ("the agent") binds the principal to later agreements made by the agent as if the principal had himself personally made the later agreements.

When an agent breaches an agency agreement?

In the case of a claim for breach of agency agreement, equitable remedies may also be available to a company, and these primarily include injunctions, an account and payment by the agent of monies it received in breach of the agency agreement, and equitable compensation which is designed to restore to a company the ...

What is the principal conflict of agency?

The principal-agent problem is a conflict that arises between an individual or group and the individual charged with representing them, due to agency costs, whereby the agent avoids responsibilities, makes poor decisions, or otherwise engages in actions that work against the benefit of the individual they represent.

What are the principle remedies for breach of contract?

In short, the potential remedies for a breach of contract claim can include compensatory damages, specific performance, injunction, rescission, liquidated damages, and nominal damages. If someone breaches a contract with you or your company, you deserve justice.

What is the best remedy for breach of contract?

Which of the following is a remedy available for breach of contract?

Suit for Damages

The word 'damages' means monetary compensation for loss suffered. Whenever a breach of contract takes place, the remedy of 'damages' is the one that comes to mind immediately as the consequence of breach.

What is principal tort liability?

If the principal directed the agent to commit a tort or knew that the consequences of the agent's carrying out his instructions would bring harm to someone, the principal is liable. This is an application of the general common-law principle that one cannot escape liability by delegating an unlawful act to another.

What must a principal do to terminate an agency at will?

CA Codes (civ:2355-2357)

An agency is terminated, as to every person having notice thereof, by any of the following: (a) The expiration of its term. (b) The extinction of its subject. (c) The death of the agent. (d) The agent's renunciation of the agency.

When can a principal sue an agent?

If an agent steps outside the bounds of their authority, e.g., by making a purchase without consent, it may lead to a lawsuit; Vicarious liability: Whether a principal is liable for an agent's actions is a common legal issue.

What is the most common remedy in the case of a principal's breach of duties?

Monetary compensation: One of the most common remedies in breach of fiduciary duty cases is monetary compensation.

Can you sue an agent for breach of contract?

The time limit to sue a real estate agent, known as the statute of limitations, depends on the specific legal claims involved. For example, in California the following deadlines apply: Breach of contract. You typically have 4 years if the contract was in writing or 2 years if it was oral.

What is the principal agency agreement?

An Agency Agreement is a contract in which a principal expressly authorizes an agent to take certain actions on behalf of the principal. So long as the agent acts within the scope of authority granted by the Agency Agreement, the actions taken by the agent have the same effect as if the principal had itself taken them.

What are remedies for the agency problem?

Incentivizing the agent to act in better accordance with the principal's best interests can help minimize this problem. The principal can administer performance-related pay to the agent to motivate them. They may pay them based on specific product sales rather than the company's total assets.

What are the two types of remedies?

Understand the basic purpose of remedies. Recognize that there are two general categories of remedies: legal and equitable. See that courts do not simply order obligors to keep their promise but instead allow them to breach and the nonbreaching party to have remedies for that breach.

What are three things that can cause a contract to be void?

What is principal agency examples?

What are the four types of agency problems?

Which of the following is an example of the principal-agent problem?

The correct answer is B.

Your roommate shirks her obligation to keep the apartment kitchen clean is an example of a principal-agent problem. A principal-agent problem is considered a conflict in which the owner of particular assets differs in priorities with the agent to whom control of that asset is delegated.