Agency - The Principal
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The note below looks at the duties owed by a principal to its agent. These
are of course subject to variation by agreement and, where they apply, The
Commercial Agents (Council Directive) Regulations 1993 (SI 1993/3053, as amended
by SI 1993/3173 and SI 1998/2868) (the Regulations):
- First and foremost to pay the agent remuneration and/ or commission.
- Where there is no express provision covering remuneration, a court will
imply a reasonable sum.
- Common law provisions state that where an agent is entitled to his
remuneration on the occurrence of some future event, he will only be entitled
to it if that event happens. If it does not take place, then (if the agreement
gives him nothing in that event) he will be entitled to nothing on a quantum
meruit basis, even though he may have expended significant effort and money.
- Also at common law and subject to any contrary provision, the agent is not
entitled to any remuneration unless he was the effective cause of the
transaction between principal and third party.
- To pay the agent's expenses and indemnify him against losses incurred in
the performance of lawful acts within the scope of the agent's authority (but
not against liability arising from the agent's own negligence or default).
Izaz Ali is a commerical lawyer
who specialises in information technology law and intellectual property law with
an emphasis on IT, escrow and buying and selling online businesses.
About the Author
Lawdit Solicitors offer services and
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agreements. We are experts in commercial law with a heavy emphasis on
Intellectual Property, Internet and e-commerce law. Lawdit is a member of the
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Article Published/Sorted/Amended on Scopulus 2008-05-11 18:44:11 in Legal Articles