What is the law of agency?

The law of agency in Maryland is a subset of business law and governs the relationship between a principal and an agent. In simple terms, it is a relationship in which one person (the principal) delegates authority to another person (the agent) to act on the principal’s behalf. The rights and duties of agents and principals are outlined in the Maryland Business Occupations and Professions Code. An agent is required to act faithfully and carry out their duties according to the instructions of the principal. They must act within the scope of the authority granted to them and are required to use their skill and care in carrying out the principal’s instructions. The agent must not take advantage of their role or use any confidential information they have access to for their own gain. The principal is responsible for compensating their agent and must reimburse them for any expenses incurred on behalf of the principal. The principal must also protect the agent against any third-party claims for damages caused by the agent’s activities. It is important to note that the laws governing the law of agency in Maryland can vary depending on the type of business being conducted and when the agreement was made. Therefore, it is important to seek advice from an attorney who can help ensure that all parties involved in an agency agreement are following the applicable laws.

Related FAQs

What is the purpose of a partnership agreement?
What is the purpose of data protection laws?
What is the purpose of antitrust legislation?
What is the role of business law in protecting businesses?
What is the difference between a corporation and a limited liability company (LLC)?
What are the requirements for maintaining a business license?
What is the purpose of environmental law?
What are the responsibilities of a corporate officer?
What are the legal requirements for issuing corporate bonds?
What are the benefits and drawbacks of franchising?

What is the law of agency?

Related FAQs

Related Blog Posts