Business agency relationships can be divided into three categories, including:
The principle and the agent are parties to an agency relationship when the principal grants the agent the authority to act just on principal's behalf. Agents in this kind of connection must not have any potential conflicts when carrying out any tasks that the principals assign them.
When one individual behaves on behalf of another and can enter into legal agreements on the principal's behalf, there is a fiduciary and mutually beneficial relationship between the two parties. It could be a professional or social connection.
Examples of Agency Relationships
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