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The law of agency is defined as the juridical relation which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the other so as to act. Agency reduces the cost of contracting and allows individuals to utilize the services of others in accomplishing tasks that could not be done by their unaided efforts. It also facilitates specialization of function, expands scarce resources, and benefits both the principal and the contracting partner.

#addis ababa university#college of business & economics#department of accounting and finance#black’s law dictionary

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