Agency Relationship
/ˈeɪdʒənsi rɪˈleɪʃənʃɪp/
Definitions
- (n.) A fiduciary relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in legal or business matters.
The agency relationship obligates the agent to act in the best interests of the principal.
Forms
- agency relationships
Related terms
Commentary
The agency relationship creates binding obligations for the principal via the agent's acts; clarity in drafting the extent of authority is essential to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.