Duties of the principal

Question 1

Duty of principal (1)

Answer 1

Pay the agent his salary and commission where due

Toulmin v Millar
-Principal instructed agent to find a tenant for his property. Agent found a tenant who later went on the purchase the property and became a purchaser
Agent tried to claim his commission but failed as he was specifically employed to find a tenant but found a purchaser.
Although he provided someone, his commission was not due and not entitled to commission under the agency agreement

Way v Latilia

Though no express term regarding rights to remuneration, where there is an employment contract, there is a clear understanding that work is not gratituos. Lordships able to imply a contractual right to a reasonable level of remuneration

Boardman v Phipps
Quantum merit for work done or rendered (an implied promise that agent will be paid for his services as much as he may deserve or merit)

Question 2

Indemnify the agent for any lawful expenses incurred

Answer 2

Rhodes v Fielder