Agency

1. Law. A formal legal relationship between at least two parties in which one, the principal, authorises the other, the agent, to represent his legal interests and to perform legal acts that bind the principal.

2. A similar less formal relationship which may be legally binding, but which may not, depending on the words and actions of the related parties.

3. A business or other organisation which facilitates business or other introductions. For example an employment agency or an estate agency.

4. Behavioural economics. The ability of individuals to exercise a significant degree of personal control over their own economic and other circumstances, or the psychological belief of an individual that they have such abilities.

See also

• Agency theory
• Agent
• Behavioural economics
• Correspondent banking
• Del credere agent
• Delegatus non potest delegare
• Principal