What is the law of agency?

The law of agency in Delaware is a legal concept that explains the relationship between a principal and an agent. An agent is someone who is authorized to represent a principal, such as a lawyer or an employee, in a business transaction. The law of agency defines the rights and obligations of each party and determines the extent of their legal responsibilities. The law of agency in Delaware determines that the agent must act on behalf of the principal in an honest and reasonable manner. The agent must use their best efforts and good judgment when making decisions on behalf of the principal. The agent is also required to keep the principal informed of their actions and to follow any instructions given by the principal. The law of agency also stipulates that the principal is responsible for any acts of the agent that have been authorized by the principal. This includes any damages or losses that may be incurred as a result of the agent’s actions. If an agent does something that is outside the scope of their authority, the principal is not liable and can seek damages from the agent. Finally, the law of agency requires the agent to act in a fiduciary capacity. This means that the agent is obligated to act solely in the interests of the principal. The agent must not use the principal’s information or resources for their own benefit or to benefit any third parties.

Related FAQs

What does the term 'corporate governance' mean?
What is the process for setting up a limited liability company?
What is the definition of commercial law?
How does the law protect vulnerable consumers?
What is the difference between a share and a bond?
How does the law protect businesses from unfair competition?
What are the rules surrounding shareholder disputes?
What is the procedure for filing a lawsuit?
What is the procedure for carrying out bankruptcy proceedings?
What is the law on insider trading?

What is the law of agency?

Related FAQs

Related Blog Posts