Also known as:principal-agent · principal/agent · agency · agency relationship · principal-agent relationship
Written by attorneys · grounded in primary & secondary sources — see below
The legal relationship in which one party authorizes another to act on its behalf subject to its control. The agent owes fiduciary duties to the principal with respect to matters within the scope of the agency.
Sources & Authorities· 40 primary sources
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Cases
Statutes
How it applies
Common Examples
6
Corporate Deposition Designation
Pacific Bank receives a notice of deposition that describes with reasonable particularity the topics for examination. The bank, as principal, designates its vice president as the managing agent to testify on its behalf about information known or reasonably available to the organization.
Former Government Lawyer Restriction
Priscilla Parks formerly served as a public officer and participated personally and substantially in a regulatory matter. As agent for a private client, she now seeks to represent that client in the same matter without obtaining written informed consent from the government agency that was her principal.
Pavel Petrov, acting as agent for Pioneer Energy, negotiates a supply contract within the scope of his agency. He secretly diverts a portion of the negotiated discount to a personal account, breaching the fiduciary duty he owes his principal.
Agency Exemption Policy Challenge
A city agency adopts a foster-care policy allowing individualized exemptions from a same-sex certification rule. Progressive Healthcare, a religious organization acting as an agent for the city, refuses to certify same-sex couples and challenges enforcement of the policy.
Third-Party Price Fixation Failure
Peak Performance contracts to buy fuel with the price to be set by an industry index published by a third-party agency. When the agency fails to publish the index, the buyer and seller must determine a reasonable price or treat the contract as cancelled.
Spousal Necessaries Liability
Patricia Patel purchases medical care for her spouse Paul Peterson. Regardless of any express agency authority between the spouses, Paul may be held liable as principal for the necessaries purchased by Patricia under principles of support obligations.
Common questions
Frequently Asked
3
How is an agency relationship created between principal and agent?+
An agency relation exists only if there has been a manifestation by the principal to the agent that the agent may act on his account, and consent by the agent so to act.
What duties does an agent owe the principal?+
An agent is a fiduciary with respect to matters within the scope of his agency.
Can a corporation be deposed through its managing agent?+
A party may name a corporation as the deponent and the organization must designate one or more officers, directors, or managing agents to testify on its behalf about information known or reasonably available to the organization.
410 U.S. 113 (1973)Constitutional Law
…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…