Question

Which of the following statements, if any, represent a principal's duty to an agent who works on a commission basis?

I. The principal is required to maintain pertinent records and pay the agent according to the terms of their agreement.

II. The principal is required to reimburse the agent for all authorized expenses incurred unless the agreement calls for the agent to pay expenses out of the commission.

A. I only.
B. II only.
C. Both I and II.
D. Neither I nor II.

Answer 1

C

Step-by-step explanation:

Here both statements I and II represent a principal's duty to an agent who works on a commission basis.

that is The principal is required to maintain pertinent records and pay the agent according to the terms of their agreement and also he is required to reimburse the agent for all authorized expenses incurred unless the agreement calls for the agent to pay expenses out of the commission.

Hence, option C is correct