what is an agent 
an agent in legal terminology is a person who has been legally empowered to act on behalf of another person or an entity an agent may be employed to represent a client in negotiations and other dealings with third parties the agent may be given decision making authority two common types of agents are attorneys who represent their clients in legal matters and stockbrokers who are hired by investors to make investment decisions for them the person represented by the agent in these scenarios is called the principal in finance it refers to a fiduciary relationship in which an agent is authorized to perform transactions on behalf of the client and in their best interest understanding an agentan agent is someone that is given permission either explicitly or assumed to act on an individual s behalf and may do so in a variety of capacities this could include selling a home executing a will managing a sports career managing an acting career being a business representative and so on agents often have expertise in a specific industry and are more knowledgeable about that industry s ins and outs than the average person for example if you started gaining attention as a musician you would hire a music agent to help guide you through getting a record deal signing record contracts and arranging your touring schedule as you would not have any experience with the record industry you would need an agent to look out for your best interests and take care of a lot of the work that you would otherwise most likely not be able to complete on your own this would also free up your time so that you can concentrate on making music types of agentsagents come in all types depending on their function and the industry in which they operate in general there are three types of agents universal agents general agents and special agents universal agents have a broad mandate to act on behalf of their clients often these agents have been given power of attorney for a client which gives them considerable authority to represent a client in legal proceedings they may also be authorized to make financial transactions on behalf of their clients general agents are contracted to represent their clients in specific types of transactions or proceedings over a set period they have broad authority to act but in a limited sphere a talent agent for an actor would fall under this category special agents are authorized to make a single transaction or a series of transactions within a limited period this is the type of agent most people use from time to time a real estate agent securities agent insurance agent and travel agent are all special agents practicing as an agent in a specific industry without the proper license or registration can lead to fines or being prohibited from acting as an agent in that industry in the future before working as an agent ensure that you have obtained the right license certification and registration uses of agentspeople hire agents to perform tasks that they lack the time or expertise to do for themselves investors hire stockbrokers to act as middlemen between them and the stock market athletes and actors hire agents to negotiate contracts on their behalf because the agents are typically more familiar with industry norms and have a better idea of how to position their clients more commonly prospective homeowners use agents as middlemen relying on the professional s greater skills at negotiation businesses often hire agents to represent them in a particular venture or negotiation relying on the agents superior skills contacts or background information to complete deals loyalty responsibilities of an agentduring the course of business an agent may benefit this is especially true when an agent is paid to perform a task on behalf of the principal for example a real estate agent commonly receives a commission for their work in selling a house 