Discuss the nature of agency, including the scope of agency purposes.

Agency is a consensual relationship between two persons, a principal and an agent, through which the agent is authorized to act for and on behalf of the principal.The agent represents the principal in business dealings with a third person. The agent acts for and in the name and place of the principal, with the result the same as if the principal had dealt directly with the third person. Within the scope of the authority granted by the principal, the agent may negotiate the terms of contracts with others and bind the principal to such contracts. The negligence of an agent who is an employee in conducting the business of the principal exposes the principal to possible tort liability. As a general rule, a person may do through an agent whatever business activity he may accomplish personally. However, a person may not appoint an agent to perform acts so personal that their performance may not be delegated.