Rights and Duties of Principals and Agents

Mutual Responsibilities

Both principals and agents owe legal duties to each other. These duties promote trust, honesty, and efficient business operations.

• Agents owe loyalty, obedience, reasonable care, accounting, and disclosure.
• Principals owe compensation when agreed, reimbursement for authorized expenses, cooperation, and indemnification in appropriate circumstances.

Agency is built on trust and fiduciary responsibility.