Introduction to Agency: Defining Agency Relationships
This lesson introduces the student to agency relationships and explores the following questions: Why are agency relationships formed? Who are the parties to an agency relationship? What elements are required to form an agency relationship? and What are the consequences of forming an agency relationship?
On completion of the lesson, the student will be able to:
1. Define the terms "principal" and "agent."
2. Explain how the law of agency governs the relationships between individuals and/or organizations who accomplish their work by using the services of others.
3. Discuss the legal requirements for forming an agency relationship.
4. Analyze the qualifications one must have in order to be a principal or an agent.
5. Examine the impact of forming agency relationships.