What is the difference between agent and principal?
A principal, according to ASU 2016-08, is the company that is providing the good or service to the customer, and an agent is the company arranging for the good or service to be provided to the customer. An agent acts on behalf of the principal and normally will receive a commission for its services.
What are the rights and duties of principal?
(1)He can enforce the various duties of an agent. (2) He can recover compensation for any breach of duty by the agent. (3) He can forfeit agent’s remuneration where the agent is guilty of misconduct in the business of agency. (4) Principal is entitled to any extra profit that the agent has made out of his agency.
What are the rights of an agency?
Rights and Duties of Agents
- Right to Remuneration. As per section 219, an agent has a right to receive the agreed remuneration or in absence of agreement, a reasonable remuneration for rendering the services to the principal that are not voluntary or gratuitous.
- Lien on Goods.
- Right to be Indemnified.
When can agency be terminated?
201 provides that: An agency is terminated by the Principal revoking his authority or a by the agent renouncing the business, or by the business of the agency being completed or by either the principal or agent dying or becoming of unsound mind; or by the principal being adjudicated an insolvent under the provisions of …
What are the rights of insurance agent?
Rights of an Agent: It is basic right of an agent that he should receive the remuneration of his services. 2. Right of Compensation: In case of injury caused to agent by the negligence of the principal may be compensated by the principal.
Can an agent be a minor?
Can a minor be an agent or principal? A minor can never be a principal because Section 183 of the Indian Contract Act for anybody to become a principal he should be of the age of majority and be of sound mind and since a minor is not competent to contract, he also cannot employ an agent.
What is duty of an agent?
1. To act in the best interests of the principal. a. When an agent is appointed to facilitate or negotiate a transaction on behalf of the principal, the agent owes a duty to the principal to act in the principal’s best interests within the authority of the agent.