What are the duties of the principal to the agent?
Understand the Problem
The question is asking about the responsibilities that a principal has towards an agent in a legal or business context. This typically involves discussing the obligations a principal has, including financial and informational responsibilities to the agent.
Answer
Principal's duties: compensate, reimburse, indemnify the agent.
The principal's primary duties to the agent include compensating the agent as agreed, reimbursing the agent for expenses, and indemnifying the agent against claims or liabilities incurred while performing assigned duties.
Answer for screen readers
The principal's primary duties to the agent include compensating the agent as agreed, reimbursing the agent for expenses, and indemnifying the agent against claims or liabilities incurred while performing assigned duties.
More Information
In an agency relationship, the principal has certain obligations to ensure the agent is supported in executing their duties effectively. These duties help create a trustworthy and efficient working relationship.
Tips
A common mistake is confusing the duties the agent owes to the principal with those the principal owes to the agent. Ensure you differentiate between them.
Sources
- Duties of a Principal to an Agent - Explained - The Business Professor - thebusinessprofessor.com
- Duties and Responsibilities of a Principal - Lesson - Study.com - study.com
- Agency Basic Law - Stimmel Law - stimmel-law.com
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