Which of the following statements, if any, represent a principal's duty to an agent who works on a commission basis?

a) The principal is required to maintain pertinent records and pay the agent according to the terms of their agreement.

b) The principal is required to reimburse the agent for all authorized expenses incurred unless the agreement calls for the agent to pay expenses out of the commission.

c) Both a) and b).

d) None of the above.

Question

Business

Eduardo Rice

21 July, 15:19

Which of the following statements, if any, represent a principal's duty to an agent who works on a commission basis?

a) The principal is required to maintain pertinent records and pay the agent according to the terms of their agreement.

b) The principal is required to reimburse the agent for all authorized expenses incurred unless the agreement calls for the agent to pay expenses out of the commission.

c) Both a) and b).

d) None of the above.

+4

Answers (1)

Know the Answer?

Reese Macias · Answer 1

a) The principal is required to maintain pertinent records and pay the agent according to the terms of their agreement.

Explanation:

The relationship between agent and principle is agreement based and differs from other agent-principle relationships.

Commission will be paid to agent as per their agreement.