ABSTRACT
Agency The agency relationship lies at the heart of commercial and business life. Agents are used to negotiate the sale of goods or services or to negotiate and conclude the sale of goods or services on behalf of a principal. The relationship of principal and agent arises whenever the principal authorizes an agent to make contracts on his or her behalf. Generally, there will be a contract between the principal and the agent, with the latter being paid for his or her services, but it is possible for the agent to act gratuitously.
