Liability of Principal and Agent
As you read this chapter, consider why contracts are important and how they work. Pay close attention to the following topics: liability in contract, principal criminal liability, and how agency relationships are terminated. By the end of this chapter, you will be able to name the principal's liability in contracts, torts, and criminal law and the agent's personal liability in tort and contract, and how agency relationships are terminated. The relevance of the legal issues presented in this chapter is integrally connected with business finance and how relationships are conducted in the business world.