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- An agency relationship is created when one person or entity agrees to perform a task for, and under the direction of, another individual or entity. An agent is the person who is authorized to act for or in place of another. A principal is the person who authorizes another to act on his, her, or its behalf as an agent.biz.libretexts.org/Bookshelves/Civil_Law/Fundamentals_of_Business_Law_(Ra…
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14.1: Introduction to Agency and the Types of Agents
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