If there is no agreement as to the amount of compensation to be paid the agent,the law implies a promise that the principal will pay the agent the customary fee paid in the industry.

Question

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This statement is true. When there is no agreement regarding the amount of compensation to be paid to the agent, the law implies a promise that the principal will pay the agent the customary fee that is paid in the industry. This is known as the implied promise of usual and customary compensation.

If There Is No Agreement as to the Amount of Compensation