What rights does an agent have while conducting business on behalf of a principal?

An agent has the right to be compensated and reimbursed for expenses incurred while conducting business on behalf of the principal. This right stems from the fiduciary relationship established between the agent and the principal, where the principal typically is responsible for covering reasonable expenses associated with the agent's work. This is essential because it encourages agents to act on behalf of the principal without the concern of bearing unexpected costs that could deter them from fulfilling their duties.

In the context of agency law, this right acknowledges the agent's efforts, time, and dedication put into representing the principal's interests. Compensation includes any agreed-upon fees for services rendered, while reimbursement relates to actual costs incurred, such as travel, materials, or other necessary expenses directly connected to fulfilling their obligations.

The other options misrepresent the rights typically associated with agents. Agents do not have the right to unilaterally alter agreements without consent, as that would violate the principal's authority and potentially lead to liability issues. Making decisions solely based on personal judgment is not permissible, as agents must operate within the authority granted by the principal and guided by the principal's interests. Finally, while an agent may refuse to act under certain circumstances—such as if instructed to engage in illegal activities—this is not a general