How do agents differ from independent contractors?

Agents differ from independent contractors primarily in their relationship with a principal. Agents are individuals who have been authorized to act on behalf of another person or entity, referred to as the principal, in various transactions. This means that agents have a legal responsibility to represent the interests of the principal, making decisions and taking actions within the scope of their authority. They are engaged in a fiduciary relationship, which imposes obligations such as loyalty and disclosure to ensure that the principal's best interests are served.

In contrast, independent contractors operate autonomously and typically provide services under a contract for a client but do not work under the direct control of that client in the same way an agent works for a principal. Independent contractors carry out their tasks as they see fit and are not bound by the same level of fiduciary responsibility since they do not represent the interests of another party in the same comprehensive capacity.

This distinction highlights the nature of agency relationships compared to the more transactional nature of independent contractor arrangements. While agents function as representatives, independent contractors are more like service providers operating on their own terms.