If an agency relationship did not establish a rate of compensation for the duties of the agent, the principal must pay the "customary" rate for such services.

Question

Quizplus · Accepted Answer

When there is no established rate of compensation in an agency relationship, the principal is responsible for paying the customary rate for the relevant industry or location. This is because the agent is expected to be reasonably compensated for their services, and the customary rate serves as a reasonable benchmark.

If an Agency Relationship Did Not Establish a Rate of Compensation