Duties of the Principal

The most important duty of the principal is, naturally, payment of the agent’s commission. The agent is entitled to a reasonable commission for the performed work, and compensation for the costs incurred in connection therewith. This applies even in the absence of an agreement regarding compensation. The parties must explicitly agree if the assignment is intended to be gratis. It is advisable to agree on the commission amount, or at least the grounds for calculating the commission, in the commission agreement. The commission can be agreed, for example, as a fixed fee or as a fee based on the amount of time spent on the assignment.

The principal also has a duty of loyalty towards the agent. The principal must assist in the fulfillment of the contractual obligations, and provide the agent with the information necessary for fulfilling the assignment.

If the principal is in breach of his/her duties, the principal is liable for damages towards the agent.