Agency Relationships Agency relationships are so common in our day to day lives. For there to be an agency relationship, there must be a consensual relation among two parties, whereby one party (the principal] gives entire authority to another party (the agent), who would act on his or her behalf or even under the condo] of a principal to transact with the third party [ CITATION RogUQ \\l 1033 ]. As a result, a fiduciary relationship is created. In fact, the