What is an agency relationship?

British Columbia, Canada

The following excerpt is from Sharbern Holding Inc. v. Vancouver Airport Centre Ltd., 2007 BCSC 1262 (CanLII):

An agency relationship exists when one party, the agent, has the authority to affect the legal position of the other party, the principal, by the making of contracts. Whether authority has been conferred upon an agent is a question of fact which may be established by showing that it was expressly given, or by showing that the acts of recognition by the supposed principal are such that the trier of fact can infer that the agent was duly appointed: Sayward v. Dunsmuir (1905),11 B.C.R. 375 (S.C.).

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