Important rights of agent against the principal are given below:
1. Right to receive remuneration (Sees. 219 and 220):
The agent is entitled to receive his agreed remuneration, or if nothing is agreed, to a reasonable remuneration, unless he agrees to act gratuitously. In the absence of any special contract, the right to claim remuneration arises only when the agent has done what he had undertaken to do.
ADVERTISEMENTS:
Effect of misconduct:
An agent who is guilty of misconduct in the business of the agency is not entitled to any remuneration in respect of that part of the business which he has misconducted. In addition, he is liable to compensate the principal for any loss caused by the misconduct.
Illustrations (Appended To Sec. 220):
(a) A employs B to recover 1, 00,000 rupees from C, and to lay it out on good security. B recovers the 1,00,000 rupees and lays out 90,000 rupees on good security, but lays out 10,000 rupees on security which he ought to have known to be bad, whereby A loses 2,000 rupees.
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ADVERTISEMENTS:
B is entitled to remuneration for recovering the 1, 00,000 rupees and for investing the 90,000 rupees. He is not entitled to any remuneration for investing the 10,000 rupees and he must make good the loss of 2,000 rupees to A.
(b) A employs B to recover Rs 1,000 from C. Through B’s misconduct the money is not recovered (the debt might have become time-barred because of B’s negligence or leniency). B is entitled to no remuneration for his services and must make good the loss to A.
2. Right of retainer (Sec. 217):
ADVERTISEMENTS:
An agent has the right to retain, out of any sums received on account of the principal, all moneys due to himself in respect of his remuneration, or advances made or expenses properly incurred by him in conducting the business of agency.
3. Right of lien (Sec. 221):
An agent has the right to retain goods, papers and other property, whether movable or immovable, of the principal received by him, until the amount due to himself for commission, disbursements and services in respect of the same has been paid or accounted for to him. This right is, however, subject to a contract to the contrary.
4. Right to be indemnified against consequences of lawful acts (Sec. 222):
An agent has also the right to be indemnified against the consequences of all lawful acts done by him in exercise of the authority conferred upon him.
Illustration (Appended To Sec. 222):
B, at Singapore, under instructions from A of Kolkata, contracts with C to deliver certain goods to him. A does not send the goods to B and C sues B for breach of contract. B informs of the suit, and A authorises him to defend the suit. B defends the suit and is compelled to pay damages and costs, and incurs expenses. A is liable to B for such damages, costs and expenses.
It may be noted that the agent cannot claim indemnity in respect of acts which are apparently unlawful or criminal (Sec. 224).
Illustration (Appended To Sec. 224):
A employs B to beat C and agrees to indemnify him against all consequences of the act. B thereupon beats C and has to pay damages to C for so doing. A is not liable to indemnify B for those damages.
5. Right to be indemnified against consequences of acts done in good faith (Sec. 223):
An agent has a right to be indemnified against the consequences of an act done in good faith though it turns out to be injurious to the rights of third persons.
Illustration (Appended To Sec. 223):
B, at the request of .4, sells goods in the possession of/f, but which A had no right to dispose of. B does not know this and hands over the proceeds of the sale to A. Afterwards C, the true owner of the goods, sues B and recovers the value of the goods and costs. A is liable to indemnify B for what he has been compelled to pay to C and for B’s own expenses.
6. Right to compensation (Sec. 225):
The agent has a right to be compensated for injuries sustained by him due to the principal’s neglect or want of skill.
Illustration (Appended To Sec. 225):
A employs B as a bricklayer in building a house, and puts up the scaffolding himself. The scaffolding is unskilfully put up and B is in consequence hurt. A must make compensation to B.
7. Right of stoppage of goods in transit:
An agent has a right to stop the goods in transit to the principal (just like an unpaid seller), if (i) he has bought goods either with his own money or by incurring a personal liability for the price and (ii) the principal has become insolvent.