Question

Fill in the blanks with words that would best complete the passage.avoidance, contractual, abeyance, indemnification, principal, criminal, agent, constructive trustThe principal has several remedies available, including ___ for breach of fiduciary duties and ___ 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 ___ and will be considered held in ___ for the principal. If the agent breaches the agreement, the principal also has a right of ___. Finally, if the principal is sued for the agent’s negligent conduct, the principal can sue the agent for ___ .

Answer 1

Answer:

Constructive trust, contractual,

principal, constructive trust, avoidance,

indemnification

Explanation:

Constructive trust is a fair remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights due to a breach of fiduciary duty.

For misrepresentation, negligence, deceit, libel, slander or trespass by an agent contractual remedies may be applied such as; award of damages, restitution, or specific Performance.

The agency relationship is an arrangement in which one entity (the principal) legally appoints another (the agent) to act on its behalf, so anything that the agent obtains by virtue of the agency relationship belongs to the principal.

A constructive trust is imposed by a court If an agent breaches his or her fiduciary duty to the agent by retaining benefits or profits that belong to the principal. It would be Implied that the agent held the thing on the principal’s behalf.

Avoidance here implies that a principal can avoid or stay away from the contract.

Indemnification sometimes mandates an agent to indemnify (compensate, protect) the principal from the damages.