Final answer:
An agent who takes their principal's money for personal gain is guilty of "embezzlement". Embezzlement is the theft of assets by a person in a position of trust or responsibility over those assets. It is a serious offense that can result in heavy fines, restitution, and incarceration.
Step-by-step explanation:
If an agent misappropriates his or her principal's money, he or she is guilty of embezzlement. Embezzlement is a type of property theft where an individual, who is trusted with the management or monitoring of someone else's assets, steals all or part of those assets for personal gain. In a business context, this typically involves monetary funds, but it can include any property that the agent has been entrusted to oversee.
The legal consequences of embezzlement can be quite severe, with punishments including fines, restitution, and possible incarceration. The severity of the penalties often depends on the value of the assets misappropriated and other specifics of the case. In the context of agency law, when the agent steps outside the scope of their authority or acts against the interests of the principal, they breach their fiduciary duty, and embezzlement is an extreme example of such a breach.