Discuss and explain the statement Agency refers to the-01134
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vu eco402 Microeconomics.
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vu eco402 Mid Term Solved Past Paper No. 1.
Contract of Agency
In general terms, Agency refers to the relationship which exists between two persons, the Principal and the Agent in which the Agent has to perform different duties/ functions as per instructions of the principal and also enters into contract with the third party / parties on behalf of the principal. The relationship of agency plays an important role in business and commercial dealings. This relationship is legal created by virtue of agreement between Principal and Agent.
Definition of Agent and Principal
Agent is a person employed to do any act for another or to represent another in dealing with a third persons. The person for whom such act is done, or who is so represented, is called the Principal.
