Video: Rights and Remedies for an Agent

In this lesson, dive into the nitty-gritty of an agent's rights and remedies with Nick Palazzolo, CPA. Nick conveys the essential rights of agents such as the right to compensation, reimbursement, indemnification, and information, emphasizing the interplay between these rights and the principal's duties. Delving deeper, the lesson covers the particulars, like the right to clear instructions and even the possibility of a lien over the principal's property. The conversation also touches on the agent's right to legal remedies and the circumstances under which an agent can terminate an agency relationship or sue for damages, reinforcing the importance of knowing what protections and courses of action are available to an agent in the face of a principal's breach of agreement.

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Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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What are the rights of an agent? Well, an agent has a lot of these rights. The agent has the right to compensation unless the agent has agreed to work gratuitously, as we mentioned prior. They have the right to receive compensation for their services as agreed upon in the agency contract. They have the right to reimbursement. So we see where a lot of these rights of an agent are kind of also in line with the duties of a principal to an agent. You want to memorize them overall, but some of them kind of overlap because the duty of a principal to an agent is the right of an agent. So you see the relationship. The agent has the right to be reimbursed for any reasonable expenses they incur while carrying out duties on behalf of the principal, so while they're actually working. If I work for a company and then on the weekend I go out and spend a lot of money, I can't just say, hey, company, pay me for all the money I spent on the weekend unless it was related to part of my role. Right to indemnification, the agent has the right to be indemnified by the principal for any losses or liabilities they incur while acting within the scope of their authority and in the best interest of the principal. If I'm working in a warehouse and a box falls on me and I get injured, I'd probably get workers' comp, all that, get benefits for that, and get paid by the employer. Right to information, the agent has the right to obtain necessary information from the principal to effectively carry out their duties and make informed decisions on the principal's behalf. If I am a financial advisor for a larger

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Agency & Contract Law

Module: 2 Concepts, 34 Videos

Principals & Agents: Authority, Duties, and Liabilities Overview

2:02

Introduction to Principals and Agents

3:30

Formation of Agency

5:58

Terms Related to Principals and Agents