Rights of principal – Business Law | BBA Notes

Rights of principal | Business Law | BBA Notes

There are following rights of the principal against his agent: 

Right to revoke agent: In case, where the agent commits fraud or uses excess authority or deceives his, the principal has the right to revoke him before the commencement of the work. The revocation discharges the agent from his position and he cannot work a behalf of his principal.

Right to instruct: The principal has the right to instruct his agent in respect of the working procedure. The agent also has to follow his instruction.

Right to have compensation: The principal has the right to claim compensation from his agent if he does any work beyond the authority provided to him by the principal or by carelessness or negligence. In such a case, the agent is liable for the loss of his principal.

Right to demand secret profit: The relation between the agent and principal is fiduciary and the agent has no right to make any secret profit. If he does so, the principal has the right to demand such a secret earned profit from his agent.

Right to disown or reject: Although the principal is bound to accept the all works of his agent within his authority if the agent does any work without having authority from his principal, the principal has the right to reject such unauthorized work. This right is known as the right to disown.

Right to receive account: The principal secures full power to receive an account of agency-related business with the agent.