Rights of principal

 There are following rights of the principal against his agent: –

  1. Right to revoke agent: – In case, where the agent commits fraud or uses excess authority or deceives his, the principal has right to revoke him before the commencement of the work. The revocation discharges the agent from his position and he cannot work an behalf his principal.
  2. Right to instruct: – The principal has right to instruct his agent in respect of working procedure. The agent also has to follow his instruction.
  3. Right to have compensation: – The principal has right to claim compensation from his agent if he does any work beyond the authority provided to him by principal or by careless or negligence. In such case, the agent is liable for the loss of his principal.
  4. 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 right to demand such secret earned profit from his agent.
  5. Right to disown or reject: – Although the principal is bound to accept the all works of his agent within his authority but if the agent does any work without having authority from his principal, the principal has right to reject such unauthorized work. This right is known as right to disown.
  6. Right to receive account: – The principal secures full power to receive account of agency related business with the agent. 
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Author: smriti