Agency

Agency

A relationship involving a principal and an agent, where the agent agrees to work for the benefit of the principal and is subject to their control.

Assent

The manifestation of agreement by both parties in an agency relationship.

Fiduciary Duties

Duties that agents owe to principals, including duty to exercise reasonable care and duty of loyalty.

Principal

A party in an agency relationship that allows an agent to act on their behalf.

Agent

A party in an agency relationship who agrees to act for the benefit of the principal and is subject to their control.

Termination of Agency Relationship

Either party may unilaterally terminate an agency relationship.

Independent Contractor

A person or entity that maintains a high level of independence and is not subject to the principal's control over their physical conduct of work.

Employee-Employer Relationship

A common example of an agency relationship where the employer has control over the employee's work.

Control

The principal's right to dictate the manner in which the agent performs their work.

Duty to Obey Instructions

An agent's obligation to follow the reasonable instructions of the principal.

Duty to Not Compete

An obligation of the agent not to compete with the principal in a competing business.

Duty to Avoid Secret Profits

An agent must not take undisclosed profits in the course of performing their duties.

Capacity to be an Agent

The requirement that an agent must have legal capacity, which excludes minors or incapacitated individuals unless they have minimal capacity.