By agency is meant the substitution of one person by and for another, the former to transact business for the latter. An agency may be established by implication - an express agreement with a person that he is to become the agent of another not being necessary - or verbally, or by writing. A verbal creation of agency suffices to authorize the agent to make a contract even in cases where such contract must be in writing.

Agency is of three kinds - special, general and professional. A special agency is an authority exercised for a special purpose. If a special agent exceed the limits of his authority, his principal is not bound by his acts.

A general agency authorizes the transaction of all business of a particular kind, or growing out of a particular employment. The principal will be bound by the acts of a general agent, though the latter act contrary to private instructions, provided he keep, at the same time, within the general limits of his authority.

Professional agents are those licensed by the proper authority to transact certain kinds of business for a compensation. The following are among this class of agents: 1. Attorneys. 2. Brokers. 3. Factors. 4. Auctioneers. 5. Masters of ships.

In regard to the subject of an agency, the general rule is that whatever a man may do in his own right he may also transact through another. Things of a personal nature, implying personal confidence on the part of the person possessing them, cannot be delegated.

Infants, married women, lunatics, idiots, aliens, belligerents and persons incapable of making legal contracts cannot act as principals in the appointment of agents. Infants and married women may, however, become principals in certain cases.

Agency may be terminated in two ways - (1) by the act of the principal or agent; (2) by operation of law. In the latter case the termination of the agency is effected by lapse of time, by completion of the subject-matter of the agency, by the extinction of the subject-matter, or by the insanity, bankruptcy or death of either party.

Don't do through another what would be illegal for you to do yourself.

Don't lose any time in repudiating illegal acts of your agent.

Don't make an illegal act of your agent's your own by accepting the benefit thereof.

Don't transact business through an agent unless he can show that he stands in his principal's stead in the matter in hand.

Don't, as agent, appoint sub-agents without the consent of your principal.

Don't go beyond your authority in an agency unless you are willing to become personally responsible.

Don't accept an agency or act as an attorney in fact in complicated matters unless your powers are clearly defined in writing.