【正确答案】1．Agency: An agency arises when one person (the principal)authorize another person (the Agent) to make contracts on his behalf with the third parties．It follows that there will usually be an actual appointment to confer the necessary authority on the agent．Once appointed, he shall act for the principal within the agreed authority to make contracts on the principal's behalf．According to the authority the principal has delegated, there are mainly three types of agents: Ordinary agents, General agents, Exclusive Agents.