The Restatement (Third) of Agency

The Restatement (Third) of Agency is a legal document that clarifies the rules governing agency relationships, where one person (the agent) acts on behalf of another (the principal). It outlines how agents can create legal obligations for principals, the duties agents owe to principals, and the responsibilities of principals toward agents. This framework helps ensure that both parties understand their rights and responsibilities, facilitating trust and cooperation in business and personal transactions. Essentially, it aims to provide a clearer understanding of how these relationships function under the law.