Simple English definitions for legal terms
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Actual agency is when one person (the agent) is hired by another person (the principal) to do things on their behalf. The agent can make decisions and take actions that bind the principal. This relationship can be created by a contract or by law. It allows the principal to expand their activities and benefit from the agent's work while paying them for their services. Actual agency is different from other types of agency, like agency by estoppel, which is created when a principal's actions make it seem like an agency exists, or agency by necessity, which is created in emergency situations.
Actual agency is a type of agency relationship where the agent is actually employed by the principal. This relationship can be created through an express or implied contract or by law. The agent has the power to act on behalf of the principal and can bind the principal by their words or actions.
For example, if a person hires a real estate agent to sell their property, the real estate agent becomes an actual agent of the property owner. The agent has the authority to negotiate with potential buyers and accept offers on behalf of the owner. If the agent accepts an offer, the owner is bound by that decision.
Another example of actual agency is when a person hires a lawyer to represent them in a legal matter. The lawyer becomes an actual agent of the client and has the power to make legal decisions on their behalf.
Overall, actual agency is a legal relationship where the agent has the authority to act on behalf of the principal and bind them by their actions or decisions.