The law of agency is an important subject in both business and law. It is concerned with the connection between two parties, the principle and the agent, in which the agent acts on the principal's behalf and under the principal's supervision. Both parties have specific rights and obligations as a result of this connection.

Here is a summary of the key aspects of agency law:

1.Definition : Agency is defined as a legal relationship in which one person (the agent) acts on behalf of another person (the principal). The agent is authorized to make decisions and enter into contracts on the principal's behalf.

2.Creation of Agency : Agency relationships can be formed by formal agreement, inferred agreement, or even perceived authority. A written or spoken contract between the principal and the agent creates express agency, whereas implied agency may develop from the parties' behaviour. The principal, on the other hand, gives the illusion of an agency relationship, causing others to assume that the agent has the authority to act.

3.Agent Duties: Agents have fiduciary duties to their principals, including loyalty, obedience, and confidentiality. The agent must act in the best interests of the principal and not exploit their position.

4.Principal's Duties: Principals have obligations to their agents, such as compensating them for their services and providing a safe working environment.

5.Types of Agent : Agents are classified as either general agents or special agents. Special agents have limited authority for a specific assignment or transaction, whereas general agents have extensive ability to act on behalf of the principal within a specific scope.

6.Termination of Agency: An agency relationship can be dissolved through mutual agreement, the expiration of the agency period, the completion of the agent's work, the death of either party, or revocation by the principal. Furthermore, under specific conditions, agency partnerships can be ended by operation of law.

7.Agent Authority: An agent's authority might be either actual or apparent. Actual authority is openly granted to the agent by the principal, either orally or in writing. As previously stated, apparent authority occurs when the principle generates a reasonable belief in others that the agent has the ability to act on their behalf.

8.Liability in Agency : Agents can bind their principals in contracts or legal duties, holding the principal liable for the agent's conduct within the limits of their authority. Agents, on the other hand, may be held personally accountable for their acts if they exceed their power or act carelessly.

9.Ratification: When an agent acts without previous approval, the principal may opt to ratify the agency's activities, accepting the consequences as if they had been allowed from the start.

The law of agency has wide-ranging ramifications, particularly in economic transactions, real estate, employment relationships, and corporate law. Understanding the principles of agency is critical for both principals and agents in order to properly safeguard their interests and negotiate their legal obligations.