Agency law principles from "summary" of Business Law Today, Comprehensive by Roger LeRoy Miller

Agency law is a set of principles that regulate the relationships between agents and principals. It sets out the roles and responsibilities of each, as well as the rights they have in certain situations.

Every agency agreement creates two distinct fiduciary relationships between the principal and agent whereby each holds each other's interests above their self-interests

When documents are signed in an agency context, it is presumed that the signatories knew the facts, had authority to act on behalf of the principal, and that the agreement was fair.

Principals must provide reasonable instructions for the actions of its agents, and if those instructions are not given or followed, then the principal can no longer be liable for damages unless it was a knowing participant in the wrongful activity.

Agents may generally enter into all contracts concerning matters within their authority; however, when entering into property contracts or creating third party liabilities, this must be expressly authorized by the principal.

Principals must also exercise due care, skill, and diligence in the supervision and control of its agents to release itself from potential liability.

Principals are legally obligated to compensate their agents for expenses incurred during performance of their duties, but may not held liable for acts that exceed authority given by principal.

An agency relationship can be created in several ways including appointment by contract, estoppel, or by implication or ratification.

If an agent assumes additional obligations beyond what has been delegated to them, known as "ultra vires," then they alone assume any legal liability while the principal remains unaffected.

For an agent to remain liable to his/her principal for any wrongful conduct, it requires proof that the agent acted with an actual intent to deceive the Principal.