Duties of a principal towards the agent

Obligations of the Principal to the agent include:

  • Remuneration: the principal is obliged to remunerate the agent for services rendered. This obligations may be express or implied. The agent must earn
    his remuneration by rendering services but it is immaterial that the principal has not benefited from the agents performance. However, the principal is not bound to remunerate the agent if he has acted negligently or has made a secret profit without disclosing.
  • Indemnity: the principal is bound to compensate the agent for any loss or liability arising in the course of discharging his obligations. However, the principal is only liable to indemnify the agent for liability arising while the agent was acting within the scope of his authority.
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