Law of Agency
The Law of Agency is a legal principle that allows one person, called the agent, to act on behalf of another person, known as the principal, in business or legal matters. This relationship is built on trust, where the agent has the authority to make decisions and take actions on behalf of the principal. For example, a real estate agent represents a homeowner in selling their property. The principal is responsible for the agent's actions within the agreed-upon scope, and the agent must act in the best interest of the principal.
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The law of agency is a legal principle that allows one person, called the agent, to act on behalf of another person, known as the principal. This relationship is based on trust and consent, meaning the agent has the authority to make decisions and enter into agreements for the principal. For example, a real estate agent represents a homeowner in selling a property. The agent's actions can bind the principal legally, as long as they stay within the agreed limits. Understanding agency is crucial in business and personal dealings, as it clarifies responsibilities and rights between parties.