Question : What is agency?  Define it with section. 

Answer:In legal terms, agency refers to a relationship between two parties where one party (the agent) acts on behalf of the other party (the principal) and is authorized to make legal decisions or conduct business transactions on the principal's behalf. The Indian Contract Act, 1872, provides the legal framework for agency relationships. Here is the definition of agency under the Act:

**Section 182 of the Indian Contract Act, 1872:**

   - "An 'agent' is a person employed to do any act for another or to represent another in dealings with third persons. The person for whom such act is done, or who is so represented, is called the 'principal.'"

In this section, the key elements of agency are defined:

1. **Agent:**

   - The agent is the person who is authorized to act on behalf of the principal. The agent may have the authority to enter into contracts or make decisions within the scope of the agency relationship.

2. **Principal:**

   - The principal is the person on whose behalf the agent is acting. The principal may delegate authority to the agent for specific tasks or transactions.

3. **Act for Another:**

   - The agent is employed or appointed to perform acts on behalf of the principal. These acts could include entering into contracts, making decisions, or representing the principal in various dealings.

4. **Dealing with Third Persons:**

   - The agent often interacts with third parties, and the actions of the agent may legally bind the principal to contracts or transactions with those third parties.

The agency relationship is based on mutual consent and trust between the principal and the agent. The agent owes a duty of loyalty and obedience to the principal, while the principal is generally bound by the agent's actions within the scope of their authority.

It's important to note that agency relationships can be created through express agreement, implication, or necessity, and the authority of the agent can be actual, apparent, or implied.