First Principles of Business Law

6. A principal's duties to their agent

6.1. Sources of an agent's duties

Just as an agent owes duties to their principal, so too the principal owes duties to their agent.

Some duties arise by agreement, as terms of a contract between the principal and agent.

In commercial transactions, where agents undertake work for the principal in return for payment, the relationship between the principal and agent is usually based on contract.

 Other duties arise by operation of law. The examples in this section illustrate the nature and scope of those duties.