ACCA LW · Chapter 7 · Question 3 of 10
Which of the following is NOT a duty owed by an agent to the principal?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To pay the principal's debts out of the agent's own resources
Explanation
An agent owes duties of performance, obedience, reasonable care and skill, personal performance, accounting, and fiduciary duties such as avoiding conflicts of interest, not taking bribes or secret profits, and confidentiality. There is no duty to discharge the principal's debts from the agent's own funds. Rather, it is the principal who must indemnify the agent for expenses properly incurred.
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