What is the law of agency?

The law of agency is a branch of administrative law that is focused on the relationship between agents and principals. In California, this law defines and governs the rights and responsibilities of agents and principals when they enter into an agreement. An agent is a person or entity that is appointed by the principal to act on their behalf in certain situations. An example of an agent is a real estate broker who is hired by a principal (e.g., a homebuyer) to facilitate the sale of a home. The agent is responsible for finding potential buyers and negotiating the terms of the sale. The principal is the person or entity that hires the agent. The principal is responsible for providing instructions to the agent and is legally bound to the actions of the agent. It is important to note that the principal can be held liable if the agent fails to perform their duties properly. Under the law of agency, the relationship between the principal and the agent is governed by a written or verbal agreement. This agreement outlines the scope of the agent’s authority, the duties they are responsible for performing, and the compensation they will receive in exchange for their services. Once the agreement is in place, the agent is legally obligated to carry out the tasks that are outlined within the agreement, and the principal is obligated to pay the specified fees. Failure to adhere to the terms of the agreement can result in legal repercussions.

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What is the law of agency?

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