Explanation of Article 504
The article refers to the second situation where the principal's right to dismiss or restrict their agent is limited; which is when the agency is for a fee and the principal dismisses the agent at an inappropriate time or without an acceptable justification. In such cases, the dismissal is valid, and the agent is relieved from the agency; however, the principal is required to compensate the agent for any damage incurred due to this dismissal, such as being awarded the full fee or part of it as determined by the court, because the dismissal in this situation involves an abuse that necessitates compensation.
The difference between this situation and the one mentioned in Article (503) is that in this case, the dismissal is valid and the agent is relieved, with the principal being obligated to compensate; whereas in that situation, the agent is not relieved, their agency remains in effect, and the consequences of their actions are attributed to the principal.
Related To
Article 504
If the power of attorney is for a fee and the principal dismisses the agent at an inappropriate time or without an acceptable justification, he shall compensate the agent for any resulting harm he sustains.