Civil Transactions Law (8): Agency in Contracting

The Civil Transactions Law permits contracting through an agent. Agency may be established by agreement, by court decision, or by law. Regardless of the source of the agency, the agent may not act beyond the scope of their authority.

Any contract made by the agent in the name of the principal, along with any resulting rights and obligations, shall be attributed to the principal, unless the other contracting party did not know that the agent was acting on behalf of the principal.

An agent is not permitted to contract with themselves under their agency, whether for their own benefit or on behalf of another, unless specifically authorized to do so.

If the agency has ended, but both the agent and the other contracting party were unaware of its termination at the time of contracting, the contract will still be attributed to the principal.

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