Principal’s Duties and Obligations

This short article looks at the duties and obligations of the principal in a principal/ agent relationship.

There are a number of regulations that apply some as a result of common law and others as a result of the Commercial Agents (Council Directive) Regulations 1993.

The principal is obliged to:

  • act dutifully and in good faith to the agent
  • pay the agent remuneration or commission and
  • pay the agent’s expenses and indemnify him against losses incurred in the performance of lawful acts within the scope of his authority.

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