Word Watch · Term 13 of 30 · 0:53
Agency
ProductionIllustrated Click2CE lesson; AI-assisted production with Sarah narration
In brief
Agency is a relationship in which an agent is authorized to act on behalf of a principal and owes duties arising from that relationship.
Example
Identify who the agent represents rather than assuming that the person paying a fee must be the client.
TranscriptRead along, or select a timestamp to jump there
- At this meeting, ask one question first:
- whom does the agent represent?
- Agency is a relationship in which a principal authorizes an
- agent to act on the principal's behalf.
- Follow the authority from the principal to the agent.
- Duties arise from that relationship.
- Providing services to someone does not, by itself, mean that
- person is the represented client.
- Now separate representation from payment.
- A seller might pay a buyer broker's fee, but that
- payment alone does not make the seller the broker's client.
- Identify the relationship, the agreement, and the governing rules.
- Quick check:
- does the source of a fee alone determine the client?
- No.
- Representation depends on the agency relationship, not just who writes
- the check.
