Agency Relationship

An agency relationship is a legal agreement where one person, called the agent, acts on behalf of another person, known as the principal. This relationship allows the agent to make decisions and take actions that affect the principal, often in business or legal matters. For example, a real estate agent helps a homeowner sell their property, representing the homeowner's interests. The agent has a duty to act in the best interests of the principal, maintaining trust and accountability throughout the process.