Rights of an Agent
Contract of Agency | Legal Aspects of Business and Technology
Business Law
Management Notes
An Agent
An agent is authorized to act on behalf of his principal and has power to create legal relations between the principal and third party.An agent can serve two or more principals at a time.An agent can act freely. Though he has to follow the instruction of his principal in the performance of his duty.An agent may be paid by many of commission of the basis of work done.
The duties of a principal are the rights of the agent. Contract Act, 2056 Section 62 has made a little but provision to the effect. Generally, the agent enjoys the following rights:
Rights of an Agent
a) Right to receive remuneration:
Where the contract of agency is based on the remuneration or commission, the agent has right to such remuneration or commission and it must be supplied to him. If it is not fixed, the agent is entitled to the right of reasonable remuneration. He has right to receive it at the time of completion of his work.
b) Right to lien:
The gent has power of particular lien on the goods. If the principal does not pay or denies paying sums, the agent will enjoy a right to retain the principal’s goods until he gets the sums recoverable. The agent can only retain the goods. He has no power to sell.
c) Right to claim reimbursement for expenses:
An agent might have incurred certain expenditures on behalf of his principal either on request of the principal himself or an account of understanding implied by the terms of agency. He can ask the principal to pay for such expenditures.
d) Right to claim compensation:
An agent enjoys a right to claim compensation for any loss suffered by him in-spite of all lawful acts done in exercise of his authority. He has a right to claim full compensation from the principal for any loss or damage caused to him without his own fault in the ordinary course of agency business.
e)Right to stoppage of goods in transit:
An agent has right to stop the goods in transit to the principle if he has bought goods either with his own money or by incurring a personal liability for the price and the principal has become insolvent.
Copyright Permission: Ramesh Prasad Yadav
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I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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The article is really nice. I was wondering to get right information for to contract with my agent for running my site
I love the writing. its beneficial. thank you
Welcome