This section is from the book "Popular Law Library Vol3 Contracts Agency", by Albert H. Putney. Also see: Popular Law-Dictionary.
In addition to the duty of compensating the agent where he has performed his duties with proper care and skill, the principal is bound to reimburse the agent, for all advances and expenses made in the course of the agency for the principal's benefit.8 The principal is likewise bound to indemnify the agent, for losses he is put to in performing the contract for the principal provided the agent does not exceed his authority 9 or the act performed was not illegal.10 The law also in some cases gives the agent the right to a lien.
5 Hughes vs. Washington, 72 I11, 84.
6 Story on Agency, Sec. 204. 7 Mechem's Agency, Sec. 522.
An agent may be a mere gratuitous agent but in every day ordinary affairs a commission or compensation or salary is always understood to belong to the agent. And in every case where an agreement exists as to what is to be paid, that will govern. While the general rule of law as to commission undoubtedly is that all of the duties must be performed before the principal is obligated to pay the commissions,11 still the agent may recover something for what he has actually done although he has not carried out the contract made with the principal, and where the principal prevents performance of the contract in full, the agent may recover on the contract itself.12 So he may also be prevented from fulfilling his contract by the act of God which makes it impossible for him to perform.13 An agent can never recover for services in an illegal transaction, or wherever the contract is against public policy.14
An agent is entitled to commissions only where he acts in good faith.15 The damages allowed to the principal being more than the benefits secured, there is no duty on the principal to pay, where the agent is guilty of negligence in performing, and the agent may even be obliged to respond in damages for his acts.16
8 Warren vs. Hewitt, 45 Ga., 501;
Story's Agency, Sec. 335.
9 D'Arcy vs. Lyle, 5 Binney (Pa.), 441.
10 Drummond vs. Humphrey, 39 Me., 347.
11 McGavrock vs. Woodleef, 20
Howard (U. S.), 221. 13 Bailey vs. Chapman, 41 Mo., 536.
13 Hamond vs. Holiday, 1 Carr. &
Payne, 384. 14 Stackpole vs. Earle, 2 Wils., 133;
Smith on Mercantile Law, 54,
55. 15 Sid way vs. American Mtg. Co.,
119 I11. App., 502; Sea vs.
Carpenter, 16 Ohio, 412.
 
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