Jurisdiction(s):
United Kingdom

Key definition

Agency definition

What does Agency mean? Agency describes the legal relationship by which one person (the agent) is authorised to affect a principal’s legal relations with third parties, typically by entering contracts or performing other legal acts on the principal’s behalf. It is a common law concept developed mainly through case law across England & Wales, Scotland, Northern Ireland and Ireland, with sectoral statutes in specific contexts (for example the Commercial Agents Regulations, the Partnership Act 1890 and companies legislation). Key features include authority (actual—express or implied—and apparent/ostensible), the principal’s ability to be bound or acquire rights through the agent (including by ratification),...

Sub-agency in England and Wales: delegation of authority, privity and liabilities, fiduciary duties and termination, with guidance from Sotheby’s v Mark Weiss and the Commercial Agents Regulations

Published by a LexisNexis Commercial expert

Practice notes

This Practice Note discusses the personal nature of an agency relationship and the circumstances in which the agent may delegate its authority to a third party or sub-agent

Because agency is inherently personal, the default position is that an agent must not pass to another the performance of its powers or obligations. Delegation may nonetheless occur if the principal consents or a statute confers such authority. Authority to delegate can also be inferred in particular circumstances, such as:

where the agent’s role does not call for personal expertise or trust, and the tasks could adequately be carried out by someone else
by established custom or usage of the trade
where the principal knows, or can fairly be taken to know, that the agent plans to delegate and raises no objection
where the character of the agency demands partial or complete delegation (eg tasks the agent cannot physically perform)

Generally, no privity of contract exists between the principal and any sub-agent...

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Web page updated on 21/05/2026

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