Respuesta :
A duty that a principal owes to pay an agreed-upon amount to the agent either upon the completion of the agency or at some other mutually agreeable time is known as a principal's duty to compensate.
What is principal's duty to compensate?
An agency connection may be complimentary or compensated. The principal is required to pay the agent reasonable compensation if the conditions of compensation are not specified in the agency agreement.
The main duty owed to the principal are-
- A principal's obligations to an agent are primarily to pay the agent as agreed upon and to indemnify and hold harmless the agent from any claims, liabilities, or costs incurred as a result of the agent properly carrying out the principal's instructions.
- A principal has legal obligations to fulfil toward an agent.
- The two main obligations a principle has to an agent are to pay the agent as agreed upon and to indemnify and hold the agent harmless from any claims, liabilities, or costs incurred as a result of the agent properly carrying out the principal's instructions.
- The principal is responsible for paying the agent any commissions that may be due to him in that capacity, as well as any other money owed to the agent for advances made or legitimate expenditures spent by the agent while acting as the principal's agent.
Therefore, unless the agent has decided to act for free or gratuitously, the principal must pay the agent.
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