What is the legal relationship formed between two people when one agrees to perform work for another?

The legal relationship formed between two people when one agrees to perform work for another is best characterized as the law of agency. In this context, the law of agency establishes that one party, known as the agent, has the authority to act on behalf of another party, known as the principal. This relationship allows the agent to perform tasks and make decisions that legally bind the principal in certain situations.

The law of agency is fundamental in various business and legal contexts because it outlines the responsibilities, rights, and obligations of both the agent and the principal. For example, when an employee works for an employer, the employee acts as an agent for the employer and is expected to represent the employer's interests while carrying out their duties.

While an employment contract does create a legal relationship, it is more specific to the terms and conditions of the work arrangement, rather than the overarching legal principle that defines the agency dynamic. A partnership agreement pertains to a different type of relationship, involving two or more entities who agree to share profits, losses, and management responsibilities. Respondeat superior, on the other hand, is a legal doctrine that holds an employer responsible for the actions of an employee performed in the course of their employment but does not define the relationship between the two parties.