Agency by Necessity

Agency by Necessity

A situation in which one person acts as another person's agent outside the scope of a previous agreement in order to prevent harm to the principal. For example, two persons may have a principal-agent relationship in which one acts as the other's attorney. The attorney's responsibilities probably would not include making medical decisions in the event of the client's incapacity. However, if the client has some emergency and requires immediate surgery, and there is no one else to make the decision, the attorney may be the one to give consent for the surgery. In this case, the attorney is acting as an agent by necessity.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved