legal agency
A legal relationship in which one party, the agent, is authorized to act for another, the principal, and can create obligations for them.
Definition
Legal agency describes the relationship created when a principal gives an agent power to act on their behalf. It can arise by agreement, by conduct, or sometimes by later approval of what the agent did. The agent can enter transactions that bind the principal as long as they stay within granted authority, and owes duties such as loyalty and reasonable care. The rules differ between countries and between states or regions, so contracts should state the relationship plainly. Many agency industries rely on this concept: when an agency buys media or books a venue for a client, the question of who is liable often depends on how the agency relationship is set up. This is general information, not legal advice.
In a sentence
The contract clarified whether the agency bought media as agent or as principal.
Their legal agency ended when the client revoked the authority in writing.
