Also known as:agencies · agent · agents · agent's · law of agency · principal-agent
Written by attorneys · grounded in primary & secondary sources — see below
A fiduciary relationship created by express or implied contract or by law in which one party, the agent, acts on behalf of another party, the principal, and may bind the principal by words or actions.
Sources & Authorities
How it applies
Common Examples
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Employee Statement Admitted
Amber Alonzo, an employee of Apollo Energy, told a customer during a sales call that a product contained a known defect. The customer later sued Apollo Energy for misrepresentation. The court admitted Alonzo's statement against the company because it concerned a matter within the scope of her employment and was made while the relationship existed.
Lawyer Conflict Barred
Arthur Abrams previously represented Astra Aerospace in private practice on a contract dispute. After joining a government agency, Abrams was assigned to investigate the same dispute. The agency denied consent, so Abrams could not participate because the matter overlapped with his prior substantial personal involvement.
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Common Law
General Agent Authority
Alexandra Armstrong was hired by Artemis Logistics to handle all ongoing vendor negotiations and daily supply contracts. When she signed a multi-year agreement with a supplier, the court treated her as a general agent because the role involved a series of transactions with continuity of service rather than a single deal.
Agency Exemption Claim
Amelia Amari operated a religious foster agency that declined to certify same-sex couples. A city policy allowed case-by-case exemptions for other agencies but sought to enforce the rule against Amari. The court applied strict scrutiny because the policy's discretionary exemption mechanism rendered it not generally applicable.
Partner Binds Partnership
Anthony Arnold, a partner in Alpine Mining, signed a supply contract in the partnership name for routine equipment purchases. The supplier had no notice of any limit on Arnold's authority. The partnership was bound because the act appeared to carry on the ordinary course of its business.
Trustee Delegates Duty
Anika Anand, trustee of a family trust, selected a financial advisor to manage certain investments. She exercised reasonable care in choosing the advisor, defined the scope of the delegation in writing, and later reviewed the advisor's performance reports to ensure compliance with trust terms.
Common questions
Frequently Asked
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How does apparent authority differ from actual authority?+
Actual authority arises from the principal's express or implied manifestations to the agent. Apparent authority arises from the principal's manifestations to third parties that lead them reasonably to believe the agent has authority. Both can bind the principal, but apparent authority protects reasonable third-party reliance even without direct communication to the agent.
When is a statement by an employee admissible against the employer under evidence rules?+
A statement is admissible as non-hearsay if made by the party's agent or employee on a matter within the scope of the relationship and while it existed. The statement need not have been authorized by the employer. The court considers the statement along with other evidence but the statement alone does not establish the relationship.
What limits a former government lawyer's participation in related matters?+
A lawyer who moves from private practice to government service may not participate in a matter in which the lawyer participated personally and substantially while in private practice unless the government agency gives informed consent confirmed in writing. This prevents conflicts arising from prior representation.
What distinguishes a general agent from a special agent?+
A general agent is authorized to conduct a series of transactions involving continuity of service. A special agent is authorized only for a single transaction or series not involving such continuity. The distinction affects the scope of authority and the principal's liability for the agent's acts.
17 U.S. (4 Wheat.) 316 (1819)Business Associations
…offending against the provisions aforesaid shall forfeit a sum of $500 for each and every offence, and every person having any agency in circulating any note aforesaid not stamped as aforesaid directed shall forfeit a sum not exceeding $100; every penalty aforesaid to be recovered by indictment or action of debt in the…
Business Associations RelationshipsFiduciary duties within business associations · Fiduciary duties of corporate officers and directorsNEXTGENIntermediate