Which term describes the body of law addressing the rights, duties, and related obligations arising from a principal-agent relationship?

• A. Law of Agency
• B. Agency Law
• C. Principal-Agent Law
• D. Fiduciary Law

Answer: (A)

The question is asking for the label of the legal framework that governs the rights, duties, and obligations that arise when someone acts on behalf of another. The best term for that framework is the Law of Agency. It covers how authority to act for a principal is created and limited (express, implied, and apparent authority), the duties agents owe to principals (loyalty, obedience, confidentiality, care, accounting), and the corresponding duties of principals to agents (compensation and indemnification), as well as how the relationship ends and when liability attaches for the agent’s actions. While some sources use Agency Law and refer to essentially the same body of rules, Law of Agency is the traditional, precise label for this field. Fiduciary Law is broader, applying to many trust-based relationships beyond agency, and Principal-Agent Law isn’t a standard term.