Agency Law
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Types of Agents
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Next, let’s take a look at the different types of agents.

Agents come in all kinds of different forms – it just depends on the situation. However, you can usually classify agents into a few different main types. Besides the regular agency relationship with 1 principal and 1 agent, other types of agents include:


  • When multiple agents have an agency relationship with just 1 principal


  • When 1 agent acts on behalf of multiple principals in regard to the same transaction
    • For example, a real estate agent may act as the agent for the buyer and the seller on the same piece of property
    • Dual-agents also include spies who work for 2 or more governments.


  • Is an agent of an agent, where the original agent grants authority to a sub-agent
    • For example: principal (hires)--> agent (hires)--> subagent
  • The subagent acts on behalf of the first agent and the principal
  • Sub-agents are only allowed if it is:
    • Necessary to complete a project
      • For example, a general contractor might hire a subcontractor who then hires subagents to do specific tasks
      • General contractor (principal) --> subcontractor (agent) --> mason (subagent)
    • Customary in the business industry
    • The principal expressly allows the agent to hire a subagent
    • It deals with a very trivial matter
As you can see, there are different types of agents depending on the particular situation

Next, let’s take a look at a hypothetical agency example with a bar bouncer to clarify the roles of principal, agent, and third party.