What are the differences between an agent and a broker?
Agent and broker are two terms that are often used interchangeably when discussing business transactions in Massachusetts, but there are actually important differences between the two. An agent is a person or entity legally appointed by another person or entity to act on their behalf. This means that the agent is obligated to act in the best interest of the person they represent and must adhere to their instructions. The most common examples of agents would be attorneys and real estate agents acting on behalf of their clients. A broker, on the other hand, is someone who works as an intermediary between people who wish to buy and sell various items. These items are often financial instruments, such as stocks, bonds, and various other investments. The broker is responsible for negotiating the best deal possible for both sides of the transaction. As a result, brokers are usually well-versed in the process of buying and selling in the markets they are involved in, and they often receive fee-based compensation for their services. In summary, the main difference between an agent and a broker is that an agent is appointed by someone else and is obligated to work in the best interest of their client, while a broker is an intermediary who negotiates on behalf of both parties in a transaction and is compensated through fees.
Related FAQs
What are the benefits and drawbacks of corporate governance?What are the differences between an agent and a broker?
What is the law of agency and how does it affect business transactions?
What is the concept of consideration in contract law?
What is the parol evidence rule?
What is the concept of vicarious liability in business transactions?
What is the concept of secured transactions in business transactions?
What are the legal implications of patents and trademarks in business transactions?
What is the Uniform Commercial Code (UCC)?
What are the legal implications of negotiation in a business transaction?
Related Blog Posts
Understanding Basic Business Transaction Law: A Beginner's Guide - July 31, 2023Business Transaction Law: The Benefits of Including It In Your Company - August 7, 2023
Important Considerations When Drafting Business Transaction Law Contracts - August 14, 2023
Critical Elements of Business Transaction Law and What You Need to Know - August 21, 2023
Unpacking the Complexities of Business Transaction Law - August 28, 2023