First Principles of Business Law

6. A principal's duties to their agent

6.2. Payment of fees and reimbursement of expenses

Read the facts below, and then answer the questions.

A, a cattle breeder, appoints B as his agent, instructing B to travel to neighbouring farms, and negotiate on A's behalf to purchase a good breeding bull. He agrees to pay B 10% of the purchase price as payment for carrying out this task. A lets B use a truck owned by A to drive to various farms. After a week of looking, B finds a good breeding bull owned by C that C is willing to sell. B purchases the bull for A for $5,000, arranging that A will pay for the bull when it is delivered to him. C says he will deliver the bull to A's farm, but only if B pays him $100 straight away to cover the cost of the delivery. B pays C $100 of his own money for this purpose.

1. B wants A to repay $100 that B spent on petrol while travelling around the farms, as well as the $100 that B paid C to deliver the bull. Is B entitled to claim these amounts from A?

2. B wants A to pay him $500 for the work he has done finding and buying the bull. Is he entitled to this amount?