Understanding Agency Relationships

The video tutorial explains the concept of agency, where one party (the agent) acts on behalf of another (the principal) based on authorization. It details the roles of the principal and agent, emphasizing that the agent represents the principal in dealings with third parties. The principal is responsible for the agent's actions within the scope of their authority, and is liable to third parties for these actions.

What responsibilities does the principal have regarding the actions of the agent?

How does the agent interact with third parties on behalf of the principal?