Question

Kelvin is an agent for Lookout Mountain Accountants, Inc. On Lookout's behalf and at its request, Kelvin pays Nerdlinger for custom software designed for the management of Lookout's services. Kelvin's right to obtain the amount of those payments from Lookout arises under the principal's duty of.

Answer 1

D) reimbursement.

Step-by-step explanation:

The principal's duty to reimburse states that the principal must reimburse the agent all the reasonable expenses that he/she incurred in while performing his/her duties. The costs that should be reimbursed include: travel costs, meals, lodging, incidental expenses, etc.

The amount that Kelvin paid Nerdlinger is considered a reasonable expense since it will benefit Lookout Mountain Accountants, therefore the principal must reimburse the payment.