What is an agency relationship? What duties are owed by the principal to the agent? By the agent to the principal? By each of them to third parties?© BrainMass Inc. brainmass.com December 15, 2020, 12:52 pm ad1c9bdddf
An agent is a person who does any act for another or represents another in dealing with third persons. The person for whom such act or representation is done is called principal.
Thus there are two essentials of the relationship of the agency:
1. Agreement between principal and agent
2. Intention of the agent to act on behalf of the principal.
Duties of the Principal towards agent
1. To indemnify the agent against the consequences of all lawful acts and acts done in good faith.
2. To make payment to the agent the ...
This discusses the Business agency law relationships.