Answered: Discuss the various duties,…

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Discuss the various duties, responsibilities, and liabilities of the Principal-Agent (employer-employee) relationship.

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Discuss the various duties, responsibilities, and liabilities of the Principal-Agent (employer-employee) relationship.

Expert Solution

Step 1: Define Principal-Agent relationship

The Principal-Agent relationship is a basic commercial and legal term that depicts a situation in which one party (the Principal) delegates authority and tasks to another party (the Agent) to act on their behalf. This relationship frequently entails the Principal delegating authority to the Agent to make decisions, take acts, or represent their interests in many issues. The Principal-Agent connection is common in a variety of contexts, such as employment, corporate governance, finance, law, and others.

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