General Principles of Agency

Question 1

What is an agent?

Answer 1

An agent is an individual who is authorized and consents to represent the interests of another person

Question 2

What is agency?

Answer 2

Agency is the fiduciary relationship between a client (the principal) and a person (the agent) who represents the client’s interest.

Question 3

As a fiduciary,

Answer 3

an agent is held in a position of special trust and confidence by the principal. The employment of an agent by a principal is commonly referred to as a “fiduciary relationship”, in which the agent is the “fiduciary” and owes “fiduciary duties” to their client, the principal.

Question 4

A PRINCIPAL is a who?

Answer 4

is an individual who hires an agent and then delegates to that agent the responsibility of representing his or her

interests. A more common way to refer to the principal is as a client.