What term describes a person who is authorized to perform legally binding acts on a principal's behalf?

What term describes a person who is authorized to perform legally binding acts on a principal's behalf?

• A. Agent
• B. Customer
• C. Employee
• D. Representative

Answer: (A)

The key idea here is agency: a person who is authorized to act for another in legally binding actions. This person is an agent. An agent’s authority to bind the principal can be express or implied and covers contracts and other binding acts within the scope of that authority. In New Jersey real estate and title practice, the licensee representing a buyer or seller acts as the agent, negotiating and signing agreements on the principal’s behalf, which makes those agreements binding on the principal. If the agent stays within their authority, the principal is bound by the agent’s actions; if the agent exceeds that authority, the principal may not be bound by those outside actions, and the agent could face liability. The other terms don’t inherently convey the precise legal power to bind the principal: a customer buys, an employee works for, and a representative is a more general term that doesn’t automatically indicate binding authority.

The key idea here is agency: a person who is authorized to act for another in legally binding actions. This person is an agent. An agent’s authority to bind the principal can be express or implied and covers contracts and other binding acts within the scope of that authority. In New Jersey real estate and title practice, the licensee representing a buyer or seller acts as the agent, negotiating and signing agreements on the principal’s behalf, which makes those agreements binding on the principal. If the agent stays within their authority, the principal is bound by the agent’s actions; if the agent exceeds that authority, the principal may not be bound by those outside actions, and the agent could face liability. The other terms don’t inherently convey the precise legal power to bind the principal: a customer buys, an employee works for, and a representative is a more general term that doesn’t automatically indicate binding authority.