Question 38
Law of AgencyQ, acting as the agent of P, lawfully and reasonably incurs the amount of ₦350 as expenses. If Q comes to P for payment, this is an instance of P's duty to
- A.remunerate Q
- B.repay Q
- C.indemnify Q
- D.settle Q.
Show the answer and explanation
Answer: C (indemnify Q)
Explanation
A principal must indemnify the agent for expenses properly incurred in carrying out the agency.