What is the relationship called between a principal and the agent representing him?

The relationship between a principal and the agent representing him is referred to as agency. In this context, the principal is the party that grants authority to the agent to act on their behalf, while the agent is tasked with carrying out specific tasks or decisions as authorized by the principal. The agency relationship is established through mutual consent and can be formalized by a contract, but its defining characteristic is the fiduciary duty the agent owes to the principal, which includes acting in the principal's best interests and adhering to their instructions.

In contrast, a partnership is a different type of relationship that involves two or more individuals sharing ownership and responsibilities for a business. A contract is a broader term referring to any legally enforceable agreement and does not specifically denote a principal-agent relationship. Collaboration implies working together but does not encapsulate the specific legal responsibilities and duties found within an agency relationship. Thus, agency is the most accurate term to describe this specific legal relationship.