Contractor vs. Agent: What's the Difference?
Edited by Aimie Carlson || By Janet White || Updated on September 29, 2023
A "Contractor" is an individual or entity hired to perform specific tasks or services under contract. An "Agent" represents another person or entity, often authorized to make decisions or transactions on their behalf.
Key Differences
A "Contractor" is usually an individual or business that provides specialized services, often in construction or other trades. They work under a contract that outlines the scope, time, and cost of their work. An "Agent," meanwhile, acts on behalf of another person or entity in a range of settings, such as real estate, insurance, or talent representation.
"Contractor" implies a degree of independence in performing the tasks specified in a contract. They are generally not considered employees of the company hiring them. An "Agent," conversely, is more tightly integrated into the entity they represent, and their actions can legally bind the entity.
In legal terms, a "Contractor" is bound by the terms of a contract, which is an agreement between two parties detailing specific services, timelines, and payments. An "Agent" acts under a fiduciary duty to act in the best interests of the person or entity they represent, and their role is often codified in agency law.
"Contractors" typically invoice for their services and are responsible for their own taxes, benefits, and liabilities. "Agents," on the other hand, may receive a salary or commission and are often covered by the legal and financial apparatus of the entity they represent.
Both "Contractor" and "Agent" roles are defined through legal agreements, but the nature and implications of these agreements can be quite different. A contractor's relationship is usually transactional, while an agent's relationship involves ongoing representation and decision-making.
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Comparison Chart
Relationship
Transactional
Fiduciary
Legal Framework
Contract Law
Agency Law
Financial Responsibility
Self-employed
Covered by Entity
Scope
Specific Tasks
Wide Range of Actions
Binding Nature
Cannot Bind Hiring Entity
Can Bind Represented Entity
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Contractor and Agent Definitions
Contractor
A skilled tradesperson.
The contractor specialized in plumbing and electrical work.
Agent
A person in sales or customer service.
The real estate agent showed us several houses.
Contractor
A freelance worker in various industries.
She worked as a contractor in graphic design.
Agent
A person who negotiates contracts in entertainment.
Her talent agent got her a role in a blockbuster movie.
Contractor
Someone not considered an employee.
As a contractor, he had to handle his own taxes.
Agent
An intermediary in various transactions.
The insurance agent helped us choose the right policy.
Contractor
One that agrees to furnish materials or perform services at a specified price, especially for construction work.
Agent
One that acts or has the power or authority to act.
Contractor
Something, especially a muscle, that contracts.
Agent
One empowered to act for or represent another
An author's agent.
An insurance agent.
Contractor
A person or company that builds or improves buildings.
Agent
A means by which something is done or caused; an instrument.
Contractor
A person or company that performs specific tasks like electrical or plumbing work in construction projects.
Agent
A force or substance that causes a change
A chemical agent.
An infectious agent.
Contractor
A person or company hired to maintain existing facilities like air conditioning systems, groundskeeping, etc.
Agent
A representative or official of a government or administrative department of a government
An FBI agent.
Contractor
A person hired to do a job on a business contract, as opposed to a permanent employee.
Agent
A spy.
Contractor
One who contracts; one of the parties to a bargain; one who covenants to do anything for another; specifically, one who contracts to perform work on a rather large scale, at a certain price or rate, as in building houses or making a railroad.
Agent
(Linguistics) The argument that expresses the means or cause of an action or event described by a phrase or clause. The noun John is the agent in the clause John threw the ball.
Contractor
Someone (a person or firm) who contracts to build things
Agent
To act as an agent or representative for
Who will agent your next book?.
Contractor
The bridge player in contract bridge who wins the bidding and can declare which suit is to be trumps
Agent
To act as an agent or representative.
Contractor
(law) a party to a contract
Agent
One who exerts power, or has the power to act
Contractor
A bodily organ that contracts
Agent
One who acts for, or in the place of, another (the principal), by that person's authority; someone entrusted to do the business of another
Contractor
An individual hired for specialized services under contract.
The contractor was hired to remodel the kitchen.
Agent
A person who looks for work for another person
Contractor
A business entity engaged for project-based work.
The contractor completed the highway construction on time.
Agent
Someone who works for an intelligence agency
Agent
An active power or cause or substance; something (e.g. biological, chemical, thermal, etc.) that has the power to produce an effect
Agent
(computing) In the client-server model, the part of the system that performs information preparation and exchange on behalf of a client or server. Especially in the phrase “intelligent agent” it implies some kind of autonomous process which can communicate with other agents to perform some collective task on behalf of one or more humans.
Agent
(grammar) The participant of a situation that carries out the action in this situation, e.g. "the boy" in the sentences "The boy kicked the ball" and "The ball was kicked by the boy".
Agent
(gambling) A cheat who is assisted by dishonest casino staff.
Agent
Acting; - opposed to patient, or sustaining, action.
Agent
One who exerts power, or has the power to act; an actor.
Heaven made us agents, free to good or ill.
Agent
One who acts for, or in the place of, another, by authority from him; one intrusted with the business of another; a substitute; a deputy; a factor.
Agent
An active power or cause; that which has the power to produce an effect, such as a physical, chemical, or medicinal agent; as, heat is a powerful agent.
Agent
A chemical substance having biological effects; a drug.
Agent
An active and efficient cause; capable of producing a certain effect;
Their research uncovered new disease agents
Agent
A substance that exerts some force or effect
Agent
A representative who acts on behalf of other persons or organizations
Agent
A businessman who buys or sells for another in exchange for a commission
Agent
Any agent or representative of a federal agency or bureau
Agent
The semantic role of the animate entity that instigates or causes the hapening denoted by the verb in the clause
Agent
A representative authorized to act on behalf of another.
The agent closed the deal successfully.
Agent
An individual in law enforcement or intelligence.
The FBI agent collected evidence at the scene.
FAQs
Is a Contractor considered an employee?
Generally, no. Contractors are considered self-employed.
Does an Agent work for a company?
Often, yes. Agents usually represent a company or individual and may be employees.
What is an Agent?
An agent is someone who represents another person or entity, often authorized to make decisions on their behalf.
Who handles an Agent's benefits?
If employed, the agent's benefits are usually handled by the representing entity.
What law governs Contractors?
Contract law governs the relationship between contractors and those who hire them.
How is a Contractor paid?
Typically through invoicing the hiring entity.
What is a Contractor?
A contractor is an individual or entity hired to perform specific tasks under a contract.
What law governs Agents?
Agency law governs the relationship between agents and the entities they represent.
Can an Agent make decisions for another entity?
Yes, agents can often make decisions that legally bind the entity they represent.
Who handles a Contractor's taxes?
Contractors are responsible for their own taxes.
Can a Contractor make decisions for a company?
Usually not. They are hired for specific tasks and can't bind the hiring entity.
Can someone be both a Contractor and an Agent?
Yes, but each role would have its own legal and financial implications.
Can a Contractor work in multiple industries?
Yes, contractors can work in various fields like construction, IT, and design.
What is the scope of an Agent's role?
The scope can vary widely, from sales to legal representation.
How is an Agent paid?
Through salary, commission, or a combination of both.
About Author
Written by
Janet WhiteJanet White has been an esteemed writer and blogger for Difference Wiki. Holding a Master's degree in Science and Medical Journalism from the prestigious Boston University, she has consistently demonstrated her expertise and passion for her field. When she's not immersed in her work, Janet relishes her time exercising, delving into a good book, and cherishing moments with friends and family.
Edited by
Aimie CarlsonAimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.
