CandleFocus Glossary Editor
An agent is a third-party intermediary appointed by an individual or organization to act on their behalf. Agents are typically hired to perform tasks that the individual or organization is either not able or not skilled in performing themselves. The agent is generally obliged to act in the best interests of their client and is usually held to a high standard of professionalism.
Agents may act exclusively as business representatives, such as a talent agent or stockbroker, or they may provide personal and lifestyle-related services. Agents of business representatives perform intricate, important tasks while agents providing life support may assist with tasks such as managing finances or arranging travel. Agents usually have a legal agreement in place with their clients, and they may be granted -- to varying degrees -- the right to act with legal authority in the client’s name.
Types of Agents
There are countless roles that an agent may play. They may serve as general or special agents, or be assigned other particular duties by their clients, in which case they may be known as a designated agent. A universal agent is a very powerful type of agent with authorization to do anything their client can do, including signing legal documents. Other types of agents include collection agents, who negotiate on behalf of their customers when settling debts; banks and custodial agents, who hold and invest their client’s funds; auctioneers; and property agents, who represent buyers and sellers in real estate negotiations. Attorney’s may also serve as agents, such as in the case of an estate agent or trustee.
Legal Implications
The core of the legal principle of agency is an agreement between the individual or company conducting agency with another person or company. This agreement forms an important basis in determining the duties of the agent and any rights of action they have on behalf of their client. Agreements may also be detailed enough that they impose specific obligations on the agent and explain the circumstances under which the agent may act or refuse to act, as well as their general duties and responsibilities.
Generally, agents have a fiduciary duty to act in their client’s best interests. This includes ensuring that the agent applies their skills to the maximum of their abilities as well as preventing any conflict of interest from arising. An agent’s principal may sue them for negligence if it can be shown that the agent did not act in their best interests.
In addition to a legally binding agreement, some agents may additionally require a license and/or registration with the appropriate state authorities. This may be especially true for agents dealing with sensitive tasks, such as handling financial investments.
In summary, an agent is an individual or company tasked with fulfilling certain tasks on behalf of another person or company. An agent must have authorization from their client and abide by the terms of the contract, as well as any applicable regulations or licensing requirements. Agents must always represent the interests of their client, and any negligence on the agent’s part or failure to adhere to laws and regulations may lead to legal action.
Agents may act exclusively as business representatives, such as a talent agent or stockbroker, or they may provide personal and lifestyle-related services. Agents of business representatives perform intricate, important tasks while agents providing life support may assist with tasks such as managing finances or arranging travel. Agents usually have a legal agreement in place with their clients, and they may be granted -- to varying degrees -- the right to act with legal authority in the client’s name.
Types of Agents
There are countless roles that an agent may play. They may serve as general or special agents, or be assigned other particular duties by their clients, in which case they may be known as a designated agent. A universal agent is a very powerful type of agent with authorization to do anything their client can do, including signing legal documents. Other types of agents include collection agents, who negotiate on behalf of their customers when settling debts; banks and custodial agents, who hold and invest their client’s funds; auctioneers; and property agents, who represent buyers and sellers in real estate negotiations. Attorney’s may also serve as agents, such as in the case of an estate agent or trustee.
Legal Implications
The core of the legal principle of agency is an agreement between the individual or company conducting agency with another person or company. This agreement forms an important basis in determining the duties of the agent and any rights of action they have on behalf of their client. Agreements may also be detailed enough that they impose specific obligations on the agent and explain the circumstances under which the agent may act or refuse to act, as well as their general duties and responsibilities.
Generally, agents have a fiduciary duty to act in their client’s best interests. This includes ensuring that the agent applies their skills to the maximum of their abilities as well as preventing any conflict of interest from arising. An agent’s principal may sue them for negligence if it can be shown that the agent did not act in their best interests.
In addition to a legally binding agreement, some agents may additionally require a license and/or registration with the appropriate state authorities. This may be especially true for agents dealing with sensitive tasks, such as handling financial investments.
In summary, an agent is an individual or company tasked with fulfilling certain tasks on behalf of another person or company. An agent must have authorization from their client and abide by the terms of the contract, as well as any applicable regulations or licensing requirements. Agents must always represent the interests of their client, and any negligence on the agent’s part or failure to adhere to laws and regulations may lead to legal action.