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Chapter 5: Law and Power in Agency Relationships
The complexity of modern transactions and organizations makes the use of agents in negotiation the rule, rather than the exception, in virtually all areas of life. Diplomats in treaty negotiations are agents for their governments, executives in merger discussions are agents for their corporations, and labor leaders in wage talks are agents for their unions. Although commentators often speak of the agency relationship as though it were a single type, different kinds of relationships between agent and principal exist both in fact and in law.
The specific nature of the relationship between principal and agent can profoundly affect the negotiation that the agent conducts. Two important contextual variables shaping agency relationships are law and ...