Chapter 20: Agency
The law defines agency as a fiduciary relationship between two persons whereby one acts on behalf of the other with his or her consent.
Employer-Employee Relationships
Employees who deal with third parties are taken as agents. For instance, sale transactions carried out by sales people bind the principal to the customer.
The fact that some employees are considered to be agents leads to an overlap between employment and agency law.
However, agency law has a broader reach compared to legistlations that govern employment. Employer-Independent Contractor Relationship Relationships between principals and contractors do not always involve agency relationships. For Example, an agreement between a homeowner and a real estate agent is an agency relationship while an agreement between an insurance broker ...
