ICAEW BL · Chapter 6 · Question 6 of 10
Which of the following is a right that an agent has against its principal?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) To be indemnified for expenses and liabilities properly incurred in performing the agency
Explanation
An agent is entitled to agreed remuneration and to an indemnity for expenses and liabilities properly incurred in acting within its authority. It may also have a lien over the principal's property. An agent must generally act personally and may not delegate without authority. It must not make undisclosed profits and must obey the principal's lawful instructions, even if it disagrees with them.
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