Scope and authority of the agent

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Practice notes

Scope and authority of the agent

Published by a ��˾��ҹ�� Commercial expert

Practice notes

This Practice Note describes the nature and degree of an agent's authority which is conferred upon it by the principal, subject to some limitations. This Practice Note considers the different types of agent’s authority, including actual, apparent and customary authority. It also considers authority granted under a power of attorney. This Practice Note considers the impact of an agent acting outside of its authority, whether the actions of an agent acting outside of its authority are binding on the principal and what remedies are available to a principal when an agent acts outside of its authority.

Authority of agent

An agent's authority is conferred by its principal. The scope of authority granted to agents by principals in business matters is usually a combination of all or some of the following: to introduce, conclude, or otherwise deal with contracts between the principal and customers. An agent does not necessarily have authority to bind a principal in contractual relations; this will depend on the nature of the agent’s appointment and the authority that the principal grants to the agent. Where

Jurisdiction(s):

United Kingdom

Key definition:

Scope definition

What does Scope mean?

The scope of works is a term which may be used generally in construction projects to describe the works that the contractor is expected to carry out. More specifically, ‘Scope’ is a defined term used in the NEC4 suite of contracts to specify and describe the work which the contractor is to undertake, together with any constraints on how it is to carry out such work. In the NEC3 suite of contracts, the term ‘works information’ wass used instead of Scope.

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