Explanation of Article 497
The article clarified another obligation of the agent, which is to provide the principal with two things. The first is the necessary information related to the agency.
The second is to provide an account of the agency. The agency often takes a long time, and obligating the agent to provide the principal with the necessary information obtained during the execution of the agency is a protection for the principal's interest; as it allows the principal to be aware of the agency and its consequences, and to be informed about the agency in terms of the beginning of execution, end of execution, stages of execution, the outcome of actions, and when the action ends; thus enabling the principal to make an appropriate decision.
Moreover, the agent's obligation to provide an account of the agency after completing the work, or after the period specified by the principal in the agency contract, serves the principal's interest; as it clarifies the rights owed to and by the principal, and allows the principal to seek compensation from the agent for any damage caused by the agent's failure to deliver what was received from the principal for the agency's tasks. The agent is exempted from the obligation to provide the principal with necessary information and to provide an account if the agreement or the nature of the transaction dictates otherwise; such as if the agreement exempts the agent from providing information or an account, or if custom dictates so, or if the nature of the transaction does not require providing the principal with information or an account.
The agent fulfills their duty by executing the work agreed upon in the agency contract; if the agent's work is to be performed at a specific time, they must deliver what they received to the principal at that time.
The second paragraph clarified that the sales agent does not have the right to withhold the principal's money received on their behalf as an agent unless they agreed on that, or if there is a custom of withholding; because the ownership of the price belongs to the principal.
Related To
Article 497
The agent shall update the principal with information relating to the performance of the power of attorney and shall provide him with an account thereof, unless the agreement or the nature of the dealing between the parties requires otherwise.