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A principal who creates an exclusive agency and then competes with the agent can be held liable for the agent's lost profits or sales.
Exclusive Agency
An agency in which a principal grants an agent an exclusive territory and does not allow another agent to compete in that territory.
Liable
Refers to being legally responsible to compensate or rectify a damage, loss, or breach of contract.
Lost Profits
Financial losses experienced due to another party's wrongful act or breach of contract, reflecting income that would have been earned had the wrong or breach not occurred.
- Grasp the legal responsibilities and rights of both agents and principals within an agency relationship.
- Know the legal remedies and liabilities when either the agent or principal fails to fulfill their obligations.
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Learning Objectives
- Grasp the legal responsibilities and rights of both agents and principals within an agency relationship.
- Know the legal remedies and liabilities when either the agent or principal fails to fulfill their obligations.
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