Also known as: principal agent relationship · principal-agent relationships · agency · agency relationship
Written by attorneys · grounded in primary & secondary sources — see below
A relationship in which one party manifests consent that another party shall act on the first party's behalf and subject to the first party's control, and the second party consents to so act. The agent thereby gains power to alter the principal's legal relations and owes fiduciary duties within the scope of the agency.
Progressive Healthcare receives a deposition notice describing topics about its billing practices with reasonable particularity. The company designates its chief financial officer Pearl Porter to testify on its behalf as the designated agent. Pearl's testimony binds the corporation on those matters because the principal-agent relationship authorizes her to speak for Progressive Healthcare.
Priscilla Parks formerly served as a public official who personally and substantially participated in drafting a regulation. After leaving government service she seeks to represent a client challenging that same regulation. The principal-agent relationship formed during her public employment bars the representation absent written informed consent from the agency.
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Pamela Phillips, acting as agent for Platinum Partners under an express agreement, negotiates a supply contract. She secretly accepts a kickback from the supplier that harms the principal's interests. The principal-agent relationship imposes fiduciary duties that Pamela violates, exposing her to liability for breach.
Peak Performance operates a foster agency subject to a city policy allowing individualized exemptions from placement rules. City officials retain discretion to grant or deny exemptions on a case-by-case basis. The discretionary exemption policy, rather than any principal-agent relationship, triggers strict scrutiny because it undermines general applicability.
Premier Manufacturing contracts to buy components with the price to be set by an industry trade association acting as the pricing agency. The association fails to publish the agreed standard price. The principal-agent relationship contemplated in the contract does not produce a price, leaving the buyer free to cancel or fix a reasonable price.
Perry Pratt fails to provide support to his spouse Penelope Price. Penelope petitions the court for alimony and child support. Liability for necessaries arises regardless of any principal-agent relationship arising from marriage, allowing recovery against Perry for essential purchases made by Penelope.
A principal-agent relationship arises when the principal manifests consent that the agent may act on the principal's behalf subject to the principal's control, and the agent consents to act. The relationship confers power to alter legal relations and imposes fiduciary duties on the agent.
Rule 30(b)(6) permits a party to name a corporation or other entity as deponent and requires the entity to designate one or more officers, directors, managing agents, or other consenting persons to testify. The designated individuals act as agents whose testimony binds the principal organization on the noticed matters.
A lawyer who participated personally and substantially as a public officer or employee in a matter may not later represent a client in connection with that matter unless the government agency gives informed written consent. The prior public service creates an agency relationship that triggers disqualification.
An agent who breaches fiduciary duties within the scope of the agency is liable to the principal for resulting damages or disgorgement. The principal may also rescind transactions tainted by the breach.
…or] in a hospital approved by the [Department of Health] or operated by the United States, this state, or any department, agency, or political subdivision of either;] or by a female upon herself upon the advice of the physician; and "(2) within [20] weeks after the commencement of the pregnancy [or after [20] weeks…