Agency Relationship Lawyers

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What Is an Agent?

An agent is someone who agrees to represent another person. The person the agent is representing is called a principal. An agency relationship is usually formed by an agreement between the two parties. An agent can only act on behalf of a principal for certain issues (depending on the agreement).

An agent basically acts likes an employee with the difference being the agent works with the principal by representing the principal in specific transactions and situations.  The agent is also given different types of power and authority to act on behalf of another person or a group of people in a business setting.

What Is a Principal?

A principal is somebody who agrees to have another person (an agent) act on his/her behalf in certain situations. The principal has the right to completely control the agent's conduct if it relates to the duties given to the agent by the principal.

What Is the Scope of an Agency Relationship?

Principal-agent relationships are important because agents can enter into binding contracts on behalf of the principal. However, even if a principal-agent relationship exists, the agent must have authority to enter into such contracts for the principal. In order for an agent’s contract to be binding on the principal, the agent must be acting within the scope of an agent’s authority. For the contract to be binding, the agent must have at least one of the following types of authority:

What Are the Duties of an Agent to the Principal?

An agent has several duties towards the principal. Failure to perform these duties can result in a breach of contract or tort liability. An agent's duties are very similar to that of an employee. An agent's duties include:

What Are the Duties of a Principal to an Agent?

A principal has duties towards his/her agent. Failure to perform these duties can result in a breach of contract or tort liability. A principal's duties are very similar to that of an employer. A principal's duties include:

How Can an Attorney Help Me?

An agency relationship is similar to an employer-employee relationship. An experienced employment lawyer can assist you in issues dealing with agency law. For example, an employment lawyer can help you draft an agency agreement or inform you if any parties have violated their duties.

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Last Modified: 08-03-2015 11:56 AM PDT

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