the relationship of a person (called the agent) who acts on behalf of another person,
company, or government, known as the principal. "Agency" may arise when an employer
(principal) and employee (agent) ask someone to make a delivery or name someone
as an agent in a contract. The basic rule is that the principal becomes responsible
for the acts of the agent, and the agent's acts are like those of the principal
(Latin respondeat superior). Factual questions arise such as was the agent in the
scope of employment when he/she ran down the little child, got drunk and punched
someone, or sold impure wheat? There is also the problem of whether the principal
acted in such a way as to make others believe someone was his agent-this is known
as "apparent" or "ostensible" authority. When someone who is or is not an employee
uses company business cards, finance documents, or a truck with the company logo,
such use gives apparent authority as an agent.
See also agent authority respondeat superior scope of employment
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