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<h1>Skill and diligence required from agents: liable for direct losses caused by neglect but not for remote consequences.</h1> Agents must exercise skill and reasonable diligence: apply the skill generally possessed in the trade unless the principal knows of lack of skill, and use whatever skill they have. An agent is liable to compensate the principal for losses that are the direct and immediate consequence of neglect, want of skill, or misconduct, but not for indirect or remote losses.