Which of the following is true regarding the rights of agents in an agency relationship?

Prepare for the Agency and Partnership Bar Exam with interactive flashcards and multiple choice questions. Understand the key concepts and enhance your skills. Start your journey to certification today!

In an agency relationship, agents typically have the right to be compensated for the services they provide to the principal. This compensation can be defined by the terms of the agreement between the agent and the principal, and it may take the form of a salary, commission, or another type of remuneration. This right acknowledges the agent's role in representing the principal and performing tasks on their behalf, thereby earning the right to payment for such services rendered.

The other options highlight misconceptions about the rights of agents. For instance, agents do not have the right to act without limitations, as their actions are governed by the authority granted to them by the principal, which can be limited by specific instructions or the scope of the agency agreement. Additionally, while agents make decisions for the principal within the confines of the authority given, they do not possess the right to make decisions independently in a way that would go beyond or contradict the principal’s directives. Finally, agents do not have the right to unilaterally change the terms of the contract; any modifications must typically be made with the agreement of both the agent and the principal.

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