9 Legal Relations Between Principal and Agent: Rights of the Agent against the Principal

Subject(s):

Creation of agency — Nature of agency — Principal’s liabilities

This chapter examines the three principal rights enjoyed by the agent specific to the principal–agent relationship. The first is the agent’s entitlement to remuneration: if it is a term of the contract, the agent will be entitled to remuneration in accordance with what the parties have expressly or impliedly agreed in their contract. Alternatively, the agent may be entitled to recover from the principal on the basis of a quantum meruit. Next is the right to indemnity: regardless of whether or not there is a contract, an agent is entitled to be indemnified for expenses incurred and losses occasioned in the performance of the agency. Finally, the chapter looks at how the agent may enjoy a possessory lien over the principal’s property.