LEG565 Week 8, Part 1: -Commercial Law-Agency LawSlide #Slide TitleSlide NarrationSlide 1IntroductionWelcome to Commercial Law. In this lesson, we will discuss Agency Law.Next slide. Slide 2TopicsThe following topics will be covered in this lesson:Introduction to agency law;Agency;Formation of an agency;Principal’s and agent’s duties;Tort liability to third parties;Contract liability to third parties;Independent contractors; and Termination of an agency.Next slide. Slide 3Introduction to agency lawAgency law is the large body of common law that governs agency, which is a mixture of contract and tort law.The use of agency allows one person to act on behalf of another.Next slide. Slide 4AgencyAgency relationships are comprised of a principal and an agent.Agency is the fiduciary relationship resulting from the manifestation of consent by one person to another that the other shall act in his behalf and subject to his control and consent by the other so to act. The principalis the person who employs another to act on his or her behalf and the agentis the one who agrees to act on the behalf of another. The principal-agent relationship is formed when an employer hires an employee authority to act and enter into contracts on his behalf. This is different than an employer-employee relationship in which the employee is hired to perform tasks but not enter into contracts on behalf of his employer.