{"id":4382,"date":"2022-04-26T09:50:51","date_gmt":"2022-04-26T14:50:51","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/business-contracts-forms\/what-is-law-of-agency.html"},"modified":"2024-06-06T01:22:58","modified_gmt":"2024-06-06T06:22:58","slug":"what-is-law-of-agency","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/what-is-law-of-agency.html","title":{"rendered":"What is law of agency?"},"content":{"rendered":"\n
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What is law of agency?<\/h1>\n
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\n By Lisa Burden, J.D.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Agency law governs the legal relationship between two parties in which one gives the authority to act on behalf of the other. The party who acts for the other is an agent. The party that gives the agent authority is the principal.<\/p>\r\n

Agency law also defines the relationship among agents, principals, and third parties who interact with them. As discussed below, the principal is bound by and liable for the acts of the agent done within the scope of the agent’s authority.<\/p>\r\n

Agencies can exist in every type of relationship and business organization. For example, a married person can act as their spouse’s agent. A personal representative can act as an agent of a dead person’s estate. An employee can act as the agent of their employer, forming an employment relationship. The examples touch on many aspects of employment law and business law.<\/p>\r\n

Agency law is fundamental in business relationships. Here is a closer look at the law of agency and how it affects small businesses and investors.<\/p>\r\n

Examples of Agency<\/h2>\r\n

Agency is a common relationship in the business world. Different types of agents include:<\/p>\r\n