What is the definition of the Law of Agency?

The definition of the Law of Agency pertains to the legal framework that establishes the relationship between agents and principals. In this context, an agent is a person authorized to act on behalf of another, known as the principal, in business dealings or legal matters. This body of law dictates how agents can represent principals, the extent of their authority, and the obligations both parties have towards one another. It encapsulates principles such as fiduciary duties, where agents must act in the best interests of their principals, and the concept of authority, which may be express, implied, or apparent.

By understanding this definition, one can appreciate how the Law of Agency is crucial for ensuring that transactions are conducted ethically and effectively, creating a foundation for trust in business relationships. Other options, while relevant to the business field, do not specifically address the unique roles and responsibilities bestowed upon agents and principals which are central to the Law of Agency.