Agency

Business, Legal & Accounting Glossary

Definition: Agency


Quick Summary of Agency


A relationship between a principal and an agent. In the case of a limited liability company, the shareholder is the principal and the director is the agent.



What is the dictionary definition of Agency?

Dictionary Definition


legal: a person acting on behalf of another person

n. the relationship of a person (called the agent) who acts on behalf of another person, company, or government, known as the principal. “Agency” may arise when an employer (principal) and employee (agent) ask someone to make a delivery or name someone as an agent in a contract. The basic rule is that the principal becomes responsible for the acts of the agent, and the agent’s acts are like those of the principal (Latin: respondeat superior). Factual questions arise such as: was the agent in the scope of employment when he/she ran down the little child, got drunk and punched someone, or sold impure wheat? There is also the problem of whether the principal acted in such a way as to make others believe someone was his agent-this is known as “apparent” or “ostensible” authority. When someone who is or is not an employee uses company business cards, finance documents, or a truck with the company logo, such use gives apparent authority as an agent.


Synonyms For Agency


office, authority, organisation, bureau, body

Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/agency/
Modern Language Association (MLA):
Agency. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. May 26, 2020 https://payrollheaven.com/define/agency/.
Chicago Manual of Style (CMS):
Agency. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/agency/ (accessed: May 26, 2020).
American Psychological Association (APA):
Agency. PayrollHeaven.com. Retrieved May 26, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/agency/

Definition Sources


Definitions for Agency are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 17 Views.