Answer:
The principal has several remedies available, including <u>agent</u> for breach of fiduciary duties and <u>tort</u> remedies if the agent engages in misrepresentation, negligence, deceit, libel, slander or trespass. Anything that the agent obtains by virtue of the agency relationship belongs to the <u>principal</u> and will be considered held in constructive trust for the principal. If the agent breaches the agreement, the principal also has a right of avoidance. Finally, if the principal is sued for the agent’s negligent conduct, the principal can sue the agent for indemnification.
Explanation:
The principal can sue the agent for his misuse of the authority delegated and this misuse includes the breach of fiduciary duty, misrepresentation, negligence and all those acts that harms the principal which were not performed in good faith and were out of agent's responsibility.
The benefits (Other than his fee and agreed benefits with principal) that agent obtain just because of his agency relationship, belongs to principal and must be considered as held in constructive trust.
If the contract has been breached by the agent then the principal has the right to avoid performance of the contract (Avoidance).
Indemnification is principal suing agent because due to the negligence of the agent, third party has sued the principal which would harm principal both in financial terms and reputational terms due to the negligence of the agent. Hence the principal can sue the agent for his negligence.
