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What happens if the agent breaches their duty?

The principal can potentially be subject to various damages if the agent breaches the duties owed to the principal. Some of these remedies include:

Compensation withholding – The principal has the ability to refuse payment to the agent acting on their behalf if the agent has breached their duties to the principal or has acted negligently.

Contract damages – Contract damages may be collected by the principal if the agent has been already compensated.

Kickbacks – If the agent received secret profit sharing from the deal entered into, the principal will have the right to recover those profits.

Tort damages – The principal will be able to obtain the damages performed by the agent whether the agent acted either negligently or intentionally.


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