What does the duty to reimburse entail?

The duty to reimburse fundamentally revolves around the relationship between a principal and an agent. In this context, the principal is obligated to reimburse the agent for expenses that the agent incurs while acting on behalf of the principal in the course of their duties. This principle is rooted in the understanding that the agent is performing tasks for the benefit of the principal, and as such, the principal should bear the costs associated with those tasks.

This obligation can include reasonable costs such as travel expenses, materials necessary for completing the assigned tasks, and other costs that are directly related to the agent's performance of their duties. The underlying rationale is to ensure that agents do not suffer a financial detriment while acting for the principal, as their role is to facilitate the principal's interests.

Other options present ideas that do not accurately reflect the nature of the duty to reimburse. For example, option A incorrectly states that the agent owes reimbursement to the principal, which mischaracterizes the relationship; it is indeed the principal who has the reimbursement duty. Option C incorrectly suggests that the duty is only applicable when stated in writing, while this obligation exists as a general principle of agency law. Lastly, option D incorrectly implies that agents must cover all costs themselves, which contradicts the model of reimbursement