Agent is a person who represents someone else in legal, business, or other matters. The person who employs the agent is called the principal. If the agent acts within the authority given by the principal, the principal is obligated just as if he or she had acted.
The agent’s authority may be express or implied. Express authority involves doing exactly what the principal says to do. Implied authority involves doing anything that is a normal part of the agent’s duties on behalf of the principal. For example, the president of a corporation is an agent of the corporation. He or she has implied authority to perform the customary acts of a president, even without express authority.
If the principal allows an agent to appear as if he or she has more authority than the agent really has, the principal is bound by what the agent does. If the agent acts without authority, the principal is under no obligation unless the principal takes advantage of the act or approves it in some other way. If the principal does not approve the act, the agent may be liable for damages to the person the agent misled.
