Agency Relationship Law and Legal Definition

An agency relationship is defined [by Ohio's courts] as “a consensual fiduciary relationship between two persons where the agent has the power to bind the principal by his actions, and the principal has the right to control the actions of the agent.” "[T]o show such an agency, a plaintiff must establish: “(1) That the principal held the agent out to the public as possessing sufficient authority to embrace the particular act in question, or knowingly permitted him to act as having such authority, and (2) that the person dealing with the agent knew of the facts and acting in good faith had reason to believe and did believe that the agent possessed the necessary authority.” ABA Indus., Inc. v. Fifth Third Bank, 2009 U.S. App. LEXIS 15353 (6th Cir. Ohio 2009)