What duty does the principal owe to the agent?

The principal owes the duty of compensation to the agent for services rendered as part of their agency agreement. This duty ensures that the agent is fairly compensated for their work, which is often stipulated in the contractual agreement between the two parties. Compensation can take various forms, such as salary, commission, or payment for specific tasks. The obligation highlights the principle of fairness in agency relationships, where the agent is expected to act on behalf of the principal, and in return, the principal is expected to provide appropriate compensation for that service.

While supervision, training, and promotion are important aspects of a principal-agent relationship, they aren't universally owed duties in the same way compensation is. The duty of supervision may depend on the context of the relationship and the specific desires of the principal, but it is not inherently guaranteed. Similarly, training and promotion are not standard obligations that principals owe to agents and usually fall under more situational or contractual agreements. Thus, compensation stands out as a primary and unequivocal duty that enhances the working relationship between a principal and an agent.