Agency Agreement

An agency agreement is a legal contract between a principal (someone who owns or manages a business or property) and an agent (a person or company authorized to act on their behalf). This agreement outlines the agent’s responsibilities, authority, and compensation for representing or acting for the principal. It clarifies what actions the agent can take, the scope of their authority, and the terms of their relationship, ensuring both parties understand their rights and obligations. This formal arrangement helps prevent misunderstandings and provides legal protection for both sides.