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1 Iluffcut's Alison on Cont. Pp. 431-432; Read V. Anderson, 10 q. B.

D. 100 ; Hess v. Ran, 95 N. Y. 359.

- Crowfoot V. Gurney, 9 Ring. 372; Goodwin r. Bowden, 54 Me. 424.

See also Kindig v. March, 15 Ind. 248. Post, В§ 205.

8 Hess V. Ran, siipj-a.

* Huffcut's Anson on Cont. p. 432.

PART II.

LEGAL EFFECT OF THE RELATION AS BETWEEN

PRINCIPAL AND AGENT.

В§ 73. Introduction.

It being assumed that the relation of principal and agent

has been formed, we pass to a consideration of the legal con-

sequences of the relation as concerns the principal and

agent. The relation when founded on contract imposes

mutual obligations. Even when gratuitous the agency if acted

upon calls for care and prudence on the part of the agent.

We proceed therefore to inquire : (1) What are the obliga-

tions of a principal toward his agent ; and (2) What are the

obligations of an agent toward his principal ?

92 RiilNcii'al and agent.

CHAPTER YII.

OBLIGATIONS OF PRINCIPAL TO AGENT.

В§ 74. Source and nature of obligations.

Tl)c obligations of each \ydvty are fixed cither by the terms

of the contract agreed to by them, or by the terms annexed

by law or custom, or by the terms reasonal>ly inferred from

the circumstances of the case. The relation being largely a

fiduciary one, the obligations are correspondingly high, as will

appear hereafter.

Turning then to the subject of the obligations of the prin-

cipal, we may classify them as follows : вЂ

1. The duty to comjjensate the agent.

2. The duty to reimburse the agent.

3. The duty to indemnify the agent.

В§ 75. Compensation.

An express agreement as to compensation will fix definitely

the right and amount of recovery for the agent's services.

The agreement may further fix the manner of payment or the

means of ascertaining when the compensation has been earned,

or it may fix a condition upon the haj)j)ening of which the

compensation sliall be deemed to be earned.^ In all such

cases the terms fixed by the parties will be conclusive of tlie

reciprocal rights and obligations.^

In the absence of an express agreement as to compensation,

there will arise an implied agreement to ])ay whatever the

services are reasonably worth, under all circumstances where

a reasonable man would infer that the services were not in-

1 Cutter V. rowell, 6 T. R. 3-20.

2 Wallace v. Floyd, 29 Pa. St. 184; Zerrahn v. Ditson, 117 Mass. 553;

Green v. Mules, 30 L. J. C. P. 343 ; Bower v. Jones, 8 Biiig. Go.

OBLIGATIONS OF rRINCIPAL. 93

tended to be gratuitous.^ In these cases the principal ques-

tion is, was any compensation intended ? The answer must

be sought in the circumstances of the transaction. If they

arc sucli as to lead to a reasonable inference that payment

is mutually intended, then payment may be enforced ; but if

they are such as to lead to a reasonable inference that the

services were intended to be gratuitous, then, however valu-

able they may prove to be, no payment for them can be

enforced against the one benefited. In the application of

this test some subsidiary considerations may be assumed to

be settled. Firat, if the services were rendered on request

there is a presumption that compensation was intended,^

except where the transaction is between near relatives.-^ In

the latter case there must be not only the express request

but also an express promise, for otherwise the reasonable

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