The Law of Agency

The Law of Agency is a legal principle that governs the relationship between two parties: the agent and the principal. An agent is someone authorized to act on behalf of another person (the principal) to create legal relationships with third parties. For example, a real estate agent represents a homeowner in selling property. The principal is bound by the actions of the agent, as long as those actions fall within the authority granted. This relationship highlights trust and responsibility, where the agent must act in the best interest of the principal while maintaining transparency and accountability.