Define: Actual Agency

An actual agency refers to a legal relationship where one person (the agent) is authorized to act on behalf of another person (the principal) and bind them legally in business transactions.

An actual agency can be created through an express agreement between the principal and the agent, or it can be implied through the actions and conduct of the parties involved.

The agent has a duty to act in the best interests of the principal, follow their instructions, exercise reasonable care and skill, avoid conflicts of interest, and maintain confidentiality.

The principal has the right to expect the agent to act in their best interests, be loyal and obedient, provide accurate information, and account for any funds or property entrusted to the agent.

Yes, in an actual agency, the agent has the authority to bind the principal in legal contracts as long as they are acting within the scope of their authority and the contract is for a lawful purpose.

Yes, an agent can be held personally liable for their actions if they exceed their authority, act negligently, or engage in fraudulent behavior that causes harm to the principal or a third party.

Yes, an actual agency can be terminated by mutual agreement between the principal and the agent, by the completion of the agreed-upon task, by the expiration of a specified time period, or by the death or incapacity of either party.

In general, an agent cannot delegate their authority to another person unless the principal has given explicit permission to do so. However, certain tasks or duties may be delegated if it is customary or necessary for the agent to do so.

Yes, an agent is typically entitled to receive compensation for their services unless otherwise agreed upon between the principal and the agent.

If a dispute arises, the parties may attempt to resolve it through negotiation or mediation. If a resolution cannot be reached, they may need to seek legal recourse through litigation or arbitration to protect their rights and interests.