Multiple choice

An agent has to pay compensation to his principal for his misconduct which results in losses that are

  1. indirect result of the misconduct

  2. remotely caused by the misconduct

  3. indirectly and remotely caused by the misconduct

  4. directly caused by the misconduct
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The agent is bound to act with reasonable diligence and to use such skill as he possesses and to make compensation to his principal in respect of the direct consequences of his neglect, want of skill or misconduct, but not in respect of loss or damage which are indirectly or remotely caused by such neglect, want of skillor misconduct.

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