What is the term for a relationship where one person acts for another on their behalf?

The term for a relationship where one person acts for another on their behalf is known as an agency relationship. In this context, the agent is granted authority to make decisions and take actions that legally bind the principal, who is the person being represented. This relationship is characterized by mutual consent, where the principal empowers the agent to act in their best interest, often outlined in a formal agreement.

Agency relationships are crucial in various scenarios such as real estate transactions, legal representation, and business dealings, where individuals or entities delegate tasks that require expertise or negotiation. Understanding this structure helps clarify the dynamics of responsibility and authority between the parties involved, which is fundamental in legal and commercial interactions.