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USING AN AGENTMost people deal with merchants directly when buyinggoods and services, especially important items like houses,or expensive goods like boats. When might someone wantto deal with merchant indirectly through an agent?consensual because both parties agree to it. However, the relationshipis not always contractual. An agent can represent a principal withoutreceiving consideration for his or her efforts. An agent who receives noconsideration is called a gratuitous agent. The relationship between theagent and the principal is also fiduciary in nature, which means that itis based on trust between the agent and the principal.An agency relationship is very powerful. Legally, we distinguish anagent from other types of representatives by noting that the agent has thepower to transact business for the principal. When someone acts for aprincipal, the legal effect is the same as if the principal had acted. Someagents, but not all, are employees.Example 1. Patricia Thompson asked Al Albrecht to sell her carwhile she was on vacation. When he agreed to become her agent,Al gained the power to legally bind Patricia to a sales contractfor her car. This agreement formed a consensual relationshipChapter 18: Creation of an Agency 393