Under what circumstances can an agent be compensated?

An agent can be compensated based on the terms specified in the agency agreement or contract. This foundational principle is central to the relationship between the agent and the principal. The agreement typically outlines the terms of compensation, including the amount, timing, and conditions under which the agent will be paid. This can include commissions, fees, or any other form of remuneration agreed upon by both parties.

Compensation can occur regardless of whether the principal makes a profit, as the agreement may stipulate payment terms that are not contingent on profits. Additionally, the agent does not need to act completely independently for compensation to be valid, as their duties and obligations are typically defined within the agency agreement. Moreover, while a signed contract is important to establish the relationship and terms, it is the details within the agreement that ultimately dictate compensation, rather than the mere existence of the contract itself.