What role does an agent typically serve in a principal-agent relationship?

In a principal-agent relationship, the primary role of the agent is to act on behalf of the principal with authority. This relationship is fundamental to the law of agency, where the principal delegates certain powers to the agent to perform tasks or make decisions that benefit the principal.

The agent has the responsibility to carry out these tasks in good faith and in the best interest of the principal, adhering to the agreed-upon terms of their relationship. This includes making decisions, negotiating contracts, or executing other actions that the principal would normally undertake if they were to act personally.

The characteristics of this role establish a fiduciary duty, meaning the agent must prioritize the principal's interests over their own. Consequently, this relationship fosters trust and relies on the agent to represent the principal effectively.