The term ‘Agency’ is when two parties combine and form a relationship whereby trust and consent is required in order for the principal act as a representative to the agent.
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Description
What is Agency?
The
term ‘Agency’ is when two parties combine and form a relationship whereby trust
and consent is required in order for the principal act as a representative to the
agent. The agent must trust and have confidence in the principal as they will
be working and representing them on their behalf. They will also be providing
contracts on their behalf. The agent will have the principal’s best interest
because the agent has the power to create obligations for the principal.
There
will be an agency arrangement between two people whereby the principal will act
on the agents behalf to influence his relationship with third parties, and the
other agrees to do the same.
