First Principles of Business Law

5. An agent's duties to their principal

5.1. Sources of an agent's duties

If a relationship of principal and agent is established, the parties will owe each other certain duties.

Some of these might be created by agreement, as terms of a contract entered into between the principal and the agent. Contractual rights and duties will vary according to the terms of particular agreements.

In addition to contractual terms, there are other rights and duties created by operation of law in any agency relationship. It is obviously important to know how the law governs an agent's relationship with their principal.

The examples in this section illustrate the nature and extent of these duties.