Question

Paula agrees to act as rick's agent in settlement negotiations with an insurance company. paula works out a profitable compromise for rick, but deposits the insurance company's payment in her own account and refuses to give it to rick. what remedy or remedies might a court impose for rick?

Answer 1

For this problem for breach of contract and conversion
the possible remedies include the normal contract and tort remedies. i Also, in a situation in which an agent breaches his or her duty to the principal by retaining benefits that belong to the principal, a court can impose a constructive trust and declare that the agent holds the benefits on behalf of the principal.