In agency law, who is generally liable to the principal for acts performed within authority?

Enhance your Bar Exam preparation with Themis Bar Exam Quiz. Use hints and multiple choice questions to sharpen your understanding. Excel in your Bar Exam!

In agency law, the agent is the one who must answer to the principal for acts performed within the authority granted. The agent owes the principal duties of loyalty, obedience, and diligence, and must carry out the principal’s instructions within the specified scope. If the agent breaches those duties, misrepresents, or acts negligently within that authority, the agent is liable to the principal to make good on the loss or to indemnify the principal. The principal’s exposure to third parties is a separate issue—principals answer to third parties for acts within authority, not the agents’ liability to the principal. The government isn’t involved in this liability flow.