Background Note | HBS Case Collection | 2005 (Revised from original 2004 version)

Principals, Agents, and Partners

by Arthur I Segel, Armen Panossian and Jeff Mandelbaum

Abstract

The establishment of the principal-agent relationship, the duties owed by the agent to the principal, and the principal's liability for illegal actions or representations made by the agent are all examined. Also covers the creation of partnerships and the duties of partners to one another.

Keywords: Partners and Partnerships; Agency Theory; Legal Liability;

Citation:

Segel, Arthur I., Armen Panossian, and Jeff Mandelbaum. "Principals, Agents, and Partners." Harvard Business School Background Note 804-186, January 2005. (Revised from original June 2004 version.)