Agency By Necessity

Dictionary Says

Definition of 'Agency By Necessity '

A type of relationship whereby one party can make essential decisions for another party. Agency by necessity is recognized in the courts and typically applies when one party is unable to make.
Investopedia Says

Investopedia explains 'Agency By Necessity '

If, for example, an individual is sick and unable to make a critical decision, agency of necessity would allow an attorney, parent or spouse to make decisions on behalf of the incapacitated party.

Agency by necessity refers to a situation where an agent by necessity makes a critical decision on behalf of another party who is not in a condition to do so. For example, if Person A was severely injured in a car accident and was in a coma, Person B could make the decision to allow medical staff to operate on Person A. Under normal circumstances, Person A would have to give consent, but if he or she was unable to do so, an agent can make the decision instead.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Principal-Agent Relationship

    An arrangement ...
  2. Agent

    1. An individual ...
  3. Attorney In Fact

    A person who is ...
  4. Fiduciary Risk

    A type of risk ...
  5. Power Of Attorney

    A legal document ...
  6. Principal

    1. The amount ...
  7. Prospectus

    A formal legal ...
  8. Final Prospectus

    1. The final ...
  9. Underwriting

    1. The process ...
  10. Insider

    A director or ...

Articles Of Interest

  1. Your Will: Why You Need A Power Of Attorney And Beneficiaries

    What would happen if you were suddenly unable to manage your financial affairs? Preparation is the best protection.
  2. The Top 3 Retiree Worries (And What To Do About Them)

    Discover the most common problems retirees face, and what they can do to solve them.
  3. Three Documents You Shouldn't Do Without

    Estate planning is not just about the division of assets after you die. Read on to save your loved ones extra grief.
  4. Active Investment Management Misses The Mark

    Active investment management offers little advantage in the secondary capital markets.
  5. Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  6. SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.
  7. The Currency Market Information Edge

    Unique features of the forex market may allow larger players to get a jump on smaller ones.
  8. The Flow Of Company Information

    Learn how to gather all the pieces before you start to put together your puzzle.
  9. Why Late Trading Is Illegal

    Institutional investors got a sweet deal that soured retail investors' mutual fund returns.
  10. On The Record: Communications With The Public

    NASD Rule 2211 can make or break your career as a registered principal.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center