The law of agency deals with fiduciary relationships.
Fiduciary relationships involve two individuals: the agent and the principal. The agent acts on behalf of the principal to create legal relations with other parties.
In order to be created, an agency relationship needs the consent of the agent and the principal. A written contract is not necessary, as long as it is clear both the agent and the principal have given their consent.
The end of a fiduciary relationship has to comply with the contract. A principal can take away the agent’s authority but could be forced to pay damages if it violates the contract.
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