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If a court orders the agent to return funds earned as a result of breaching their duty of loyalty to the principal, this is known as_____.

Sagot :

If a court orders the agent to return funds earned as a result of breaching their duty of loyalty to the principal, this is known as Disgorgement.

What is Disgorgement?

  • A remedy demanding the forfeiture of any profits made as a result of an individual's illegal or unjust activity by a person who benefits from such conduct.
  • This solution's main goal is to stop unfair enrichment contracts. In order to prevent unfair enrichment, the court may order a defendant to forfeit whatever income they made as a result of wrongdoing or illegal activity.
  • This equitable remedy is called disgorgement.
  • The plaintiff need not have endured any sort of damages in order to receive disgorgement.
  • The defendant must have been negligent in order for the plaintiff to seek disgorgement for the harm sustained.
  • Disgorgement is an option for a contract breach, but only under unusual circumstances

Hence, Disgorgement is the legal term for when a court compels an agent to repay the money they earned for failing to uphold their duty of loyalty to the principal.

To learn more about Disgorgement refer to:

https://brainly.com/question/18089126

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