DUTIES AND RIGHTS OF

PRINCIPAL
KETAN CHAUDHARI
T.Y.B.com (HON)
INSURANCE LAW
ROLL NO:-11 CB&I
SUBMITED TO NAKUNJ SIR

Duties And Rights Of Principal

Duties Of Principal:The duties of a principal towards his agent are the
rights of the agent against the principal. The rights
of an agent have already been discussed.
To
indemnify
the
agent
against
the
consequences of all lawful acts. The principal is
bound to indemnify the agent against the
consequences of all lawful acts done by such
agent in exerise of the authority conferred upon
him (sec.222).

To indemnify the agent against the

consequences of acts done in good faith. Where
one person employs another to do an act, and the
agent does the act in good faith, the employer is
liable to indemnify the agent against the
consequences of that act, though it causes an
injury to the rights of third person (sec. 223).
Where however any person employs another to
do an act which is criminal, the employer is not
liable to the agent. Either upon an express or an
implied promise. To indemnify him against the
consequences of that act (sec. 224).

 To indemnify agent for injury caused by principals

neglect. The principal must make compensation to
his agent in respect of injury caused to such agent
by the principals neglect or want of skill (sec.225)

To pay the agent the commission or

other remuneration agreed.

Rights Of Principal The principal

can enforce all the duties of the agent which are
indirectly the rights of the principal. When an agent
fails in his duty towards the principal the principal
has the following remedies against the agent: To recover damages. If the principal suffers any loss
due to disregard by the agent of the directions by
the principal. Or by not following the custom of trade
of the absence of directions by the principal. Or
where the principal suffer due to lack of requisite
skill care or diligance on the part of the agent. He
can recover damages accuring as a result from the
agent.

 To obtain an account of secret profits and

recover them and resist a claim for
remuneration. If the agent without the
knowledge and assent of the principal
makes any secret profits out of the
agency the principal has the right to
recover them from the agent. Not only
this the agent also forfelts his right to any
commission in respect of the transaction.
Where the agent makes a secret profit
the contract with the third party is not
rendered void.

 To resist agentss claim for indemnity

against liability incurred. Where the
principal can show that the agent has
acted as principal himself and not merely
as agent. he can rasist the agents claim
for indemnity against liability incurred by
him in such a transaction.