Law · Law of Agency
An agent purchasing goods from suppliers on behalf of a principal receives secret commissions from those suppliers and keeps them for personal use without disclosure. What is the legal remedy available to the principal?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The commissions are automatically treated as criminal bribes requiring a mandatory police report
- 2The principal can only file a lawsuit against the suppliers for directing the commission to the agent
- 3The agent has no liability as such commissions are traditionally treated as a trade perk
- 4The principal may dismiss the agent and recover the full amount of retained commissions✓
Correct answer
The principal may dismiss the agent and recover the full amount of retained commissions
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