Characteristics of agency
Agency is a relationship between two parties, one a principal and the other an agent who represents the principal in transactions with a third party. An agent may bind the principal in a contract with the third party and usually enjoys a degree of independence. An agent is distinct from an employee or independent contractor.
An agency relationship may be formed for any legal purpose. An agency agreement may be expressed in writing, orally or implied.
Agent's duties to the principal
- Duty to perform - Carry out agreed functions.
- Duty of notify - Inform the principal of material information relating to the agency.
- Duty of loyalty - Agent cannot compete against the principal or use information obtained through the relationship for his own benefit or for the benefit of others.
- Duty to account - Report to the principal on the results of actions undertaken on the principal's behalf.
Principal's duties to the agent
- Duty to perform - in accordance with contract with agent.
- Duty to compensate, indemnify and reimburse - the agent for efforts under terms of agreement.
- Duty to cooperate - with the agent as the agent acts on the principal's behalf.
Managing WealthAn agency relationship exists when one person -- called a principal -- hires another person -- the agent -- to act on his behalf. Agency theory is concerned with resolving problems that develop ...
Small BusinessPrincipal-agent problems arise when a principal employs an agent to perform duties that conflict with the agent’s best interests.
InvestingIn a principal-agent relationship, one party hires another to act on the former’s behalf.
Financial AdvisorChoosing a life insurance agent is the first and most important step in obtaining coverage. Buyers should pay attention to five key factors.
InvestingThere's no guarantee that realtors will act in your best interest, but it may be worth hiring one anyway.
InvestingMost people don't have the time, expertise or motivation to go it alone and finding a good real estate agent becomes essential to enjoying a smooth real estate transaction.
InvestingThe signs of a bad agent go beyond whether your home sells quickly.
InvestingDoing the work yourself can save money, but it could end up being more costly than a realtor’s commission in the long run.
InvestingWhen you set out to buy or sell a house, one factor worth considering is the real estate agent's fees.
InsuranceInsurance agents must possess each of the following qualities in order to be successful.