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The law of agency is an area of commercial law dealing with a set of contract relationships that involve a person, called the agent, that is authorized to act on behalf of another (called the principal) to create a legal relationship with a third party. Succinctly, it may be referred to as the relationship between a principal and an agent whereby the principal, expressly or implicitly, authorizes the agent to work under his control and on his behalf. The agent is, thus, required to negotiate on behalf of the principal or bring him and third parties into contractual relationship. This branch of law separates and regulates the relationships between:
Agents and principals;
Agents and the third parties with whom they deal on their principals’ behalf; and
Principals and the third parties when the agents purport to deal on their behalf.
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