When it comes to creating an agency, it can be done in two ways: by agreement or by law. While both types of agencies serve similar purposes, there are significant differences between them.
An agency created by agreement is formed when two or more parties sign a contract or agreement outlining their working relationship. This type of agency is created by the consent of the parties involved and is typically formed for a specific purpose or project. The parties can include individuals, organizations or businesses, and the agreement outlines the rights and responsibilities of each party involved.
On the other hand, an agency created by law is established by legislative or administrative action. This type of agency is created by the government and is tasked with carrying out specific functions or tasks outlined by law. Government or public agencies are examples of agencies created by law, and they exist to provide public services and enforce regulations.
One of the biggest differences between the two types of agencies is the level of control and oversight. An agency created by agreement is formed by the consent of the parties involved, and they have more autonomy in terms of decision making and operations. In contrast, an agency created by law is established by the government and is subject to strict regulations, oversight, and accountability to ensure the public interest is protected.
Another significant difference is the duration of the agency. An agency created by agreement exists only for the duration of the contract or agreement signed by the parties involved. Once the project or purpose outlined in the agreement is completed, the agency is dissolved. In contrast, an agency created by law is established for an indefinite period and can only be dissolved or terminated by legislative or administrative action.
In terms of liability and responsibility, an agency created by agreement places more responsibility on the parties involved to fulfill their contractual obligations. The parties are also responsible for any liabilities or damages that may arise from their actions. In comparison, an agency created by law places more significant liability and responsibility on the government or public agency to ensure that public services and regulations are carried out effectively and efficiently.
In conclusion, while both types of agencies serve similar purposes, there are significant differences between an agency created by agreement and one created by law. The level of control and oversight, duration, and liability and responsibility vary greatly between the two types of agencies. Understanding the differences between the two can help individuals and organizations determine which type of agency is best suited for their needs.
