Agency Legal Meaning and Definition

Here is a simplified definition of the legal term Agency.

Agency (noun): An 'Agency' in legal terms refers to the relationship between two parties, where one party (the agent) is authorized to act on behalf of the other party (the principal). Agencies are created when the principal gives legal authority to the agent to act on their behalf in business or legal matters. This task can be as commonplace as buying groceries or as complicated as making business deals. In your example, an 'Agency' could be a government body like the Federal Trade Commission, which has the authority to enforce antitrust laws and regulate unfair or anti-competitive business practices.