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people especially business-owners routinely hire or designate other people to perform tasks on their behalf agency law provides the set of rules governing the way in which this relationship operates agency is a legal term of art that refers to the relationship between a principal and an agent creating an agency relationship an agency relationship is a fiduciary relationship where one person called the principal allows an agent to act on his or her behalf the agent is subject to the principals control and must consent to his or her instructions classic examples of agency relationships include employer employee lawyer client and corporation officer all that is required to create an agency relationship is the manifestation of sent by both sides this manifestation can be oral or in writing examples of written agency agreements include attorney retainer agreements agency relationships can also arise from circumstances even without explicit agreement whether an implied agency arose is a que