What is Difference Between Agent and Agency?

The agency has long been at the center of philosophical discussions ranging from action theory and mentalism to free will and moral responsibility debates.

The standard theory explains the phenomenology of agency by appealing to some form of agent-causal causation, while some variations on this theme draw upon active and embodied approaches from the philosophy of mind and cognitive science (Pacherie 2008).

What is an agent?

Agents are individuals or businesses authorized to act on behalf of another, whether explicitly or implicitly. Agents may be hired to represent individuals or businesses directly, such as handling stock transactions; for instance, they could also assist in selling homes and buying properties. An example would be hiring a real estate agent to sell your house, a business broker to manage transactions, or both!

There are five distinct forms of agency: general agent, special agent, subagent, agency with an interest, and servant or employee. Depending on which form they fall under, duties and responsibilities for their principal may differ accordingly.

All agents must enter into a fiduciary relationship with their principal and act within its scope. Furthermore, any conflicts of interest must be disclosed to their principals immediately.

Loyalty, Care, Obedience, and Accounting are the four duties of an agent. Loyalty should always come first: an agent should always act in the best interest of their principal instead of taking advantage of opportunities that would benefit themselves at their principal’s expense.

Care is the second duty of an agent. They must employ sufficient expertise to complete any task assigned, inform their principal of progress or any issues that might arise, and account for all money received or spent on behalf of their principal.

What is an agency?

An agency is a legal relationship in which one individual is authorized to act on behalf of another and is often employed in business and government settings. There are five forms of agency: universal agent, general agent, special agent, subagent, and agency coupled with an interest. An agency relationship may be created explicitly or implicitly (via estoppel). Agency relationships form the cornerstone of many disciplines, such as law, insurance, acting, and music.

At times, those acting as agents appoint subagents to carry out certain activities on their behalf – these individuals become accountable for any acts committed under the same principles as the principal agent. It may even be possible for one individual to act both as an agent and subagent simultaneously.

“Agency by necessity” occurs when an agent is appointed to make decisions on behalf of someone who cannot make them themselves due to a mental or physical disability. While most commonly seen in medical situations, agency by necessity can also be utilized in business settings – for instance, when the CEO designates someone as his agent to handle unexpected issues while away. Compensation typically falls on commission rather than on an hourly rate basis.

What is an agency relationship?

A principal appoints agents to act on their behalf under specific circumstances. This practice is widespread throughout the United States and most other parts of the world; found in almost every employment relationship, sales transaction, organization structure, and business strategy. When acting as an agent for another party, their loyalty must lie with their principal instead of with the agency’s customers; this principle of non-aggression forms an essential tenet of agency law.

An agent’s authority may either be express or implied. When given in clear and direct terms – either orally or written -this type of authorization usually grants power of attorney for financial transactions on their client’s behalf. Express authority can also arise when one party informs another party they are their agent, with that third party dealing with the said individual on their behalf as their agent – for instance, literary agents often represent authors in sales transactions and collect all proceeds on their behalf from sales made on behalf of authors.

Agency by Inference refers to any arrangement where someone acts, communicates, and forms relationships implying they act on behalf of someone else – for example, when children use credit cards issued by parents to purchase necessities on behalf of themselves – this acts as evidence that children act on behalf of their parents as agents.

What is an agency contract?

An agency contract is a legal document outlining the rights and responsibilities of both a company and an agency, outlining who holds authority over what, the compensation paid out in exchange for services provided, how the agent can be reached, and any other essential aspects of their agency relationship.

Sometimes an agent may be appointed without a formal agreement; this process is known as agency by ratification or estoppel. Here, the principal ratifies an action of another by communicating their authorization either orally or written – making rescission difficult, while negation cannot occur by either party involved.

An agent may delegate authority and have services provided by subagents; however, such subagents must first be expressly authorized to act on behalf of their agent and cannot assume more authority than is assigned them by their principal. Agents must inform their principal of all actions undertaken by subagents and expressly notify them of all subagents they assign (whether oral or written notification is given). Furthermore, when performing duties, they should use reasonable diligence and skill (except specialist agents) while remaining loyal, keeping confidential information secret, and obeying the principal’s instructions.