Discuss the principal's duties to the agent

What will be an ideal response?

As a general rule, a principal owes four duties to an agent: a) compensation; b) reimbursement and indemnification; c) cooperation; and d) the provision of safe working conditions. In the absence of a written agreement, it is implied that a principal will compensate the agent for services rendered, either when services are contracted for or when they are completed. If the parties cannot agree on the amount, courts will usually indicate that the compensation should be calculated on the basis of what is reasonable or customary. An indemnity is an obligation on the part of the principal to make good, or reimburse, the agent against any losses incurred when the agent is acting on behalf of the principal. All necessary expenses can be recouped by the agent, but the agent is not entitled to expenses arising out of tortious conduct or unlawful activities. The principal must do nothing to interfere with the reasonable conduct of an agent as agreed upon in an express or implied contract. For example, if a franchisor (principal) agrees with a franchisee (agent) that the latter has an exclusive right to sell a specific item within a geographic territory, the franchisor cannot legally compete with the franchisee by setting up another franchisee within that territory. The principal has a duty to its agent to provide safe working conditions. Federal legislation such as the Occupational Safety and Health Act set standards designed to create a safe working environment for employees. Employers who repeatedly violate those standards may be fined or imprisoned or both.