Duties of a Principal to an Agent

1. Duties to compensate

1.1. An agency relationship may be paid of gratuitous (given without receiving any value of return). -The term of agency is laid out in the agency agreement.

1.2. If in the agreement, does not indicate the terms of compensation, the principal is obligated to provide compensation to the agent.

2. Duties to reimburse

2.1. The principal must repay an agent for a reasonable amount expended in performing the principal's duties.

2.2. These reimbursement expenses includes the cost of meals, travel, lodging,incidental expenses etc.

3. Duties to indemnify

3.1. Principal must indemnify (compensate) an agent for liabilities incurred in performance of the principal's duties.

3.2. The principal gives instructions to an agent in performing duties (liabilities) from a third parties