Duties Owed by Principals to Agents

Question 1

Duties Owed By Principals to Agents

Answer 1

Include:

• Duty of Compensation
• Duty of Reimbursement
• Duty to Indemnify
• Duty to Cooperate
• Exercise Due Care Toward Agent

Question 2

Duty of Compensation

Answer 2

The principal has a quasi-K duty to pay the agent the reasonable value of services rendered, unless the parties agreed otherwise.

Question 3

What if a Principal Fails to Pay an Agent?

Answer 3

The agent has an action for restitutionary damages

Question 4

Duty of Reimbursement

Answer 4

The principal is obligated to reimburse the agent for all reasonable expenses incurred in the scope of the agency.

Question 5

Duty to Indemnify and Exonerate

Answer 5

A principal has a duty to indemnify and exonerate the agent for any liability that results from his good-faith performance of his duties.

Question 6

Duty of Cooperation

Answer 6

A principal has a duty to cooperate with the agent in the performance of his duties.

Question 7

Agent’s Remedies for Principal’s Breach

Answer 7

• Usual breach of K remedies
• Obtaining a lien on any property of the principal of which he has lawful possession, but more than mere custody
• The agent may set off any money owed to him by the principal against monies collected on behalf of the principal

Question 8

Principal’s Defenses

Answer 8

Can include:

• SOF
• Illegality
• Disobedience by agent
• Contributory negligence