- He is entitled to remuneration and other expenses properly incurred by him in the agency. But if he is guilty of misconduct, he is not entitled to receive the remuneration.
Illustration: A employs B to recover Rs. 1000 from C. Through B’s misconduct, the money is not recovered. B is entitled to no remuneration for his services and must make good the loss.
- He is entitled to retain the goods, papers and other property, movable on immovable, of the principal for his claims.
- The agent has a right to be indemnified by the principal for all lawful acts.
Illustration: B at Singapore under instructions from A of Calcutta, contracts with C to deliver goods. A does not send the goods to B and C sues B breach of contract. B informs A of the suit and A authorizes him to defend the suit. B defends and is compelled to pay damages etc. A is liable to B for such damages etc.
- The agent is entitled to be indemnified for the injury caused to him by the principal’s neglect or want of skill.
Illustration: A employs B as a brick-layer in building in a house and puts a scaffolding himself unskillfully and B is in consequence, hurt. A must compensate B.
- When an agent acts in good faith, the employer must indemnify him for the consequence of that act, through it causes an injury to the rights of third parties.
Illustration: B, at the request of A, sells goods in the possession of A, but which A had no right to dispose of B does not know this and hands over the sale proceeds to A. afterwards C the true owner sues A and recovers the value of goods and costs. A must indemnify B for what he has paid and for B’s own expenses.
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