agency (2024)

Agency law is the common law doctrine controlling relationships between agents and principals. A principal-agent relationship is created when the agent is given authority to act for the principal. An agreement made by an agent is binding on the principal so long as the agreement was within the authority actually granted to the agent or reasonably perceived by a third party.

The two forms of actual authority include:

  • Express authority: An agent has express authority to take any actions requested by the principle as well as authority to take any actions inherently necessary to accomplish those requests.
  • Implied authority: An agent has implied authority to take any action the principal’s conduct indicates the agent should do. Furthermore, failure by the principal to object to an agent’s prior actions may create implied authority to repeat those actions in the future. An agent does not have implied authority to do anything expressly prohibited by the principal.

In addition to actual authority, a principal may be bound by the actions of an agent if apparent authority existed.

  • Apparent authority: An agent has apparent authority when, despite no existing authority, a third party reasonably infers that someone is authorized to act on the principal’s behalf due to the conduct of the principal. Unlike actual authority, a principal can be bound by an agent’s act made with apparent authority even if they explicitly stated that the agent could not do that act. Furthermore, a person possessing a widely recognized title like Hiring Director has apparent authority to accomplish anything a reasonable person would believe that title entails. An agent acting with apparent authority is known as an ostensible agent.

Additionally, principals can be held liable for the torts of their agents under the doctrine of vicarious liability. A principal is always liable for torts committed while the agent completes their official responsibilities.

  • For torts occurring outside of official duties, the liability of the principal depends on whether the agent’s tort occurred during a frolic or a detour. A principal is liable for the detours of their agent but not for the frolics. The primary considerations many courts use to determine if an act was a frolic or a detour are how much control over the agent’s actions the principal was exerting and who economically benefits from the agent’s actions.

[Last updated in June of 2022 by the Wex Definitions Team]

agency (2024)

FAQs

What does it mean if a person has agency? ›

Agency is the sense of control that you feel in your life, your capacity to influence your own thoughts and behavior, and have faith in your ability to handle a wide range of tasks and situations. Your sense of agency helps you to be psychologically stable, yet flexible in the face of conflict or change.

What does it mean when someone says I have agency? ›

We all have agency – the capability to act to produce a particular result. That can be hard to remember when you're in the middle of a complex organization with a lot of opportunities and challenges. In a situation like that it's too easy to give your agency away. Nothing good comes from giving your agency away.

What is the meaning of personal agency? ›

Personal agency refers to “the sense that I am the one who is causing or generating an action” (Gallagher 2000, p. 15). A person with a sense of personal agency perceives himself/herself as the subject influencing his/her own actions and life circ*mstances (Bandura 2006; Gallagher 2000).

What is the meaning of human agency? ›

Social work theories position human agency as socially mediated. As elaborated below, human agency is defined as an individual's capacity to determine and make meaning from their environment through purposive consciousness and reflective and creative action (Houston, 2010).

What is agency behavior? ›

The sense of agency refers to the subjective feeling of controlling one's own actions, and through them, external events.

What is a person's sense of agency? ›

Sense of agency refers to the feeling of control over actions and their consequences.

Why do I feel like I have no agency in my life? ›

Our sense of agency depends on what is meaningful for us.

Whereas there are others who wait for the government or people around them to help them rather than do it themselves. People with little sense of agency also typically think of their lives as fixed, dependent upon their luck or fate in life.

What does it mean when someone has no agency? ›

People with low agency experience common impediments when trying to make sound decisions. They may procrastinate, obsess over details, or worry excessively during the process; they may lack confidence and be risk-averse; or their thinking may be too fast and they act on impulse.

What is the modern meaning of agency? ›

agency in American English

1. active force; action; power. 2. that by which something is done; means; instrumentality.

What is the personality trait of agency? ›

Personal agency relates profoundly to the well-being, happiness, and success of any personality type. In basic terms, agency is a person's capacity to deliberately and effectively change events or their environment.

What is the difference between agency and control? ›

The illusion of control can be defined as the erroneous belief that one's actions cause a specific outcome, whereas sense of agency refers to the subjective feeling of authorship over one's actions.

What is agency in a relationship? ›

An agency relationship is a relationship where someone appoints someone else to carry out duties for them. It involves two entities, a principal and an agent; the principal gives the agent legal permission to act on the principal's behalf.

How does a person have agency? ›

In social science, agency is the capacity of individuals to have the power and resources to fulfill their potential. For instance, structure consists of those factors of influence (such as social class, religion, gender, ethnicity, ability, customs, etc.) that determine or limit agents and their decisions.

What is agency in men? ›

In psychology, agency is the tendency to define yourself by what makes you an individual. People high in agency are focused on their individual accomplishments and what separates them from others. Women have a tendency toward communion, while men have a tendency toward agency.

What is the difference between freedom and agency? ›

While the concepts of agency and freedom are closely related, they are intrinsically different. For the purpose of this article, agency will be used to refer to the exercise of the will. Freedom will refer to the external circ*mstance enabling an individual to carry out the choices made through his or her agency.

What does it mean to be given agency? ›

This is a correct and usable phrase in written English. You can use it when you want to give someone the power or ability to act in specific matters. For example, "The boss gave me agency to make the final decision in this project.".

What does agency mean as a characteristic? ›

In very general terms, an agent is a being with the capacity to act, and 'agency' denotes the exercise or manifestation of this capacity. The philosophy of action provides us with a standard conception and a standard theory of action.

What does agency mean in identity? ›

Agency concerns basic capacities to bring about outcomes in the world. Agency signals the presence, autonomy, and impacts of persons but can apply as well to other creatures and forces.

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