Background Note | HBS Case Collection | June 2004 (Revised January 2005)

Principals, Agents, and Partners

by Arthur I Segel, Armen Panossian and Jeff Mandelbaum


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;


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