ABSTRACT
Agency The agency relationship lies at the heart of commercial and business life. Whether it is the sales assistant or the bus conductor, the travel agent or the auctioneer, all are acting as agents. The relationship of principal and agent arises whenever the principal authorizes an agent to make contracts on his behalf. Generally, there will be a contract between the principal and the agent, with the latter being paid for his services, but it is possible for the agent to act gratuitously.
