Law of Agency: A Practical Guide

The Law of Agency refers to the legal relationship where one person, called the "agent," is authorized to act on behalf of another, the "principal," in dealings with third parties. This relationship is based on mutual consent, where the agent can perform tasks or make decisions within agreed limits, binding the principal legally. Common examples include real estate agents, lawyers, or company employees acting on behalf of their employer. The law ensures that the agent’s actions legally represent the principal, and both have rights and responsibilities, such as loyalty, good faith, and accountability.