An employment relationship comes with additional benefits: things such as workers' compensation for some positions, or paid time off, or even health care benefits.
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Within these agreements, the principal and agent outline their expectations for the agency behavior and agree to the bounds of the relationship between them.Īn Agency Agreement is different than an Employment Agreement because, with an Agency Agreement, no full employment relationship is created. In an Agency Agreement, the agent agrees to take on, and the principal agrees to give the agent, certain responsibilities so that the agent may act for the principal in the specific situations described in the agreement.Īn agency agreement can be used for any type of agent-principal relationship, such as those for bigger businesses (where an agent might be acting for the principal among the public or signing agreements on behalf of the principal) to those for smaller business or individuals (where an agent might be doing one individual task for the principal).
The agent is the person that will be acting on behalf of the principal.
The principal is the person who is essentially "hiring" or engaging the agent (although an employment relationship is usually not created between the two). An Agency Agreement, also sometimes called an Agent Agreement, is a document between two parties, a principal, and an agent.
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