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What is Agency Law?

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    Part of the video series: Business Laws

    From Quick Guide: General Business Law Overview

    Summary: Agency law in business deals with an agent, a principle, and the authorization of an agent or employee performing action with a third party that creates liability for the principle. Learn more about agency law and how it affects business with tips from a lawyer in this free video on business law.

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    By Robert M. Todd
    eHow Presenter

    Robert Todd is the managing partner and president of Robert M. Todd, P.A. and Family Law Solutions. He is a certified family mediator and Florida Supreme Court certified civil...read more

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    Video Transcript

    "You're running a business with employees and one of your employees runs into some trouble with one of your customers and you hear for the first time the concept of he's one of your agents. Hello, I'm Robert Todd and I'm here to answer the question what is agency law? Agency law has to do with an agent, the principle, authorizing one of their agents or an employee to perform an action or an activity with a third party, in this case the client, and in doing so, creates liability for the principle. In other words, despite the fact that the principle has not dealt directly with the client, the principle's agent has done so and in doing so, creates a relationship and in the case that I'm describing, has committed some type of wrong for which the principle would be responsible. I'm Robert Todd and thank you for watching."

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