There is an existence of a fiduciary relationship between the principal and the agent. The agent has the power to perform a task on behalf of the principal during employment. The agent is bound to adhere to the broad set of duties that are set. There is a risk of the principal being held liable for any mistake the agent makes. To avoid controversies, the law of the agency prescribes rules that both parties have to follow.
Both parties in the contract owe a duty to the opposite party. The power of exercising rights has been given to the agent as well as to the principal. Remedies can be claimed by both parties when they find out their rights are being violated.
The agent has the following duties. The principal has to fulfill the rights of the agents and vice versa. Non-adherence to this rule would lead the accused party to pay compensation. Once the agent follows this, they can claim their rights and remedies to perform the duties with due diligence and care and to perform the tasks put forward by the terms of the agency.
After the work is done, the agent holds the power to claim the remuneration from the principal. A principal owes the duty to pay the agent based on the agreement signed. The term of the agency should clearly state the remuneration that needs to be provided to the agent. The agent can only claim the remuneration that has been prescribed. A set of contractual duties has to be adhered to by the principal. There needs to be fair dealing and good faith when the principal is dealing with the agent.
There is a chance of an implied contract to exist between the principal and the agent. Here, the contract does not clearly state what the payment will be. The agent still has a right to claim remuneration in this case. The court is empowered to decide what will be the remedy the agent will get. Whether or not the agent will get the remedy will depend on the facts of the case and the wordings of the agreement. In most cases, when the agent performs the work per the agreement, there is always a remuneration provided.
Some contracts or agreements might have some unique terms mentioned. These clauses will have to be taken into consideration as well.
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