| A | B |
|---|
| If a principal fails to fulfill his or her obligations, the agent has the right to quit or recover damages | True |
| If an agent improperly incurs expenses, the principal must reimburse the agent | False |
| If an agent suffers any loss because of the principals instructions, the principal must repay the agent the amount lost | True |
| A principal is not liable for an agents crime unless the crime is authorized or ratified | True |
| If an agent defrauds a customer in order to make a sale, the principal is liable for any damages that may result | True |
| If an agent acts without authority from the principal the agent becomes personally liable to the principal for any resulting injury | False |
| An undisclosed principal is one whose existence or identity is not to be revealed by the agent | True |
| When an agent represents an undisclosed principal the principal is liable for any contracts | False |
| Both the agent and the principal usually have the power to terminate the agency | True |
| A gratuitous agent cannot usually recover any damages if the authority is revoked | True |
| An agency is usually terminated upon the death or insanity of either the principal or the agent | True |
| The principal is not entitled to damages when an agent terminates the agency before the contract expires | False |
