The principal has a duty to keep records from which the compensation due the agent can be determined.

Question

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According to the law of agency, the principal has a duty to keep records that can help determine the compensation due to the agent. This duty is consistent with the principal's obligation to act in good faith towards the agent and to follow the terms of the agency agreement. Failure to keep records can result in disputes between the principal and the agent, or even legal action if the agent feels they have been unjustly compensated.

The Principal Has a Duty to Keep Records from Which