1.When does the agency arise?

2.How can we make full use of the four different types of agencies?

An agency arises when one person (the principal) authorizes another person (the agent)to make contracts on his behalf with third parties.It follows that there will usually be an actual appointment to confer the necessary authority on the agent.Once appointed,he shall act for the principal within the agreed authority to make contracts on principal’s behalf.There are four types of agency:brokers,general agent,sole (exclusive) agent,and commission agent.Out of the four sole (exclusive) agent is authorized by the principal to exclusively transact the business of this principal of specific kind within a specific place.Sole (exclusive) agency will not sell other goods that compete with the principal’s.While a commission agent is a firm or person who acts under some degree of instructions from his principals to sell or to buy goods on the best terms obtainable.He charges a “commission”for his service under some kind of agreement or contract.