When can a principal obtain the forfeiture of an agent's salary or commission?

A principal can obtain the forfeiture of an agent's salary or commission when the breach of duty by the agent was intentional. Intentional breaches exemplify a lack of fidelity and trust, fundamental principles in the agency relationship. This breach essentially undermines the core expectations of the agency contract, allowing the principal to seek forfeiture as a remedy.

Forfeiture acts as a deterrent to agents, reinforcing the necessity for them to act in the best interests of their principals. In contrast, if an agent's breach of duty is unintentional, or if the agent mismanaged funds without malice, the principal might still have obligations to the agent under the terms of their agreement. Similarly, simply refusing to perform tasks may not rise to the level of a breach that justifies forfeiture unless the refusal is part of a larger, intentional disregard for the principal's interests.