LEGAL ASPECTS OF BUSINESS Introduction Agency relationship denotes a contractual relationship between a principal and an agent where the latter is bound to do certain acts on behalf of the former. Key features of the agency relationship The agency relationship is defined as a legal arrangement where under an agent is appointed by a principal for the purpose of acting in a specified manner at the direction of the principal. Thus, it is important to note that the law of agency is not only limited to the agent and the principal relationship,