Developing agency is a common goal in psychotherapy, and many therapists aim to help people act autonomously in a way that works best for their individual needs and lifestyles. Agency is also important for people who have mental health conditions that might interfere with their decision-making. For example, the director of a psychiatric hospital might discuss the importance of giving the people who stay there agency–the ability to exert some control over their everyday lives and to act on their own environments.
When one party delegates some authority to another party whereby the latter performs his actions in a more or less independent fashion, on behalf of the first party, the relationship between them is called an agency. Agency can be express or implied. Chapter X of the Indian Contract Act, 1872 deals with the laws relating to Agency. It is important to know the law relating to agency because nearly all business transactions worldwide are carried out through agency. All corporations, big or small, carry their work out through agency. Therefore, laws relating to the agency are an important area of Business Law. Relationships relating to principal and agent involve three main parties: The Principal, the Agent, and a Third Party.