Representation is a legal term used to describe the act of one party speaking, acting, or negotiating on behalf of another party. The party doing the representing is known as the agent, while the party who authorized the agent or authorized the actions is known as the principal. Both the agent and the principal must agree to the same terms in the representation contract.
When Representation Is Necessary
Representation is usually necessary when a person or organization wishes to enter into a legally binding agreement with another person or organization. Common examples of when representation is needed include when a person wants to buy a house, enter into a business arrangement, or accept a job offer.
The Role of the Agent
The agent’s role is to listen to the terms of the agreement and seek out the best possible deal for the principal. Agents typically have an intimate knowledge of the law and must take into account all factors that could affect the agreement. They must ensure that the principal’s rights and interests are protected, and if any disputes arise, they will be responsible for resolving them.
Conclusion
Representation is a crucial part of legal contracts and agreements. By understanding the role of the agent and their responsibility to the principal, it’s possible to ensure that both parties benefit from the agreement and are well-protected in the long run.