The statement "Agency agreement is not a legally binding one."
is false.
Agency agreements are created when a person wants to give
authority to another party to take actions on her/his behalf. The person giving authority is
called the principal and the person to whom the authority is given is called the
agent.
Once the agreement has been created, the agent has the right
to act on behalf of the principal and sign legal documents which would be treated like they have
been signed by the principal personally. The principal has complete responsibility to ensure that
they are honored.
The agency agreement has to be created after a lot
of thought and due process by the principal as a lot of power is vested with the agent through
its creation
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