Principal-Agent Relationship
/ˈprɪnsəpəl ˈeɪdʒənt rɪˈleɪʃənʃɪp/
Definitions
- (n.) A fiduciary relationship where one party (the agent) is authorized to act on behalf of another (the principal) in legal or business matters.
The principal-agent relationship requires the agent to act in the best interests of the principal.
Forms
- principal-agent relationships
Related terms
See also
Commentary
The principal-agent relationship imposes fiduciary duties on the agent, including loyalty and care, and underpins many commercial transactions and legal representations.
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.