Judicial principles and studies
Agency and Administrative Delegation in Contracting: Limits and Liabilities
A concise overview of agency in contracting, the limits of administrative delegation, the principal's liability for the agent's acts, and the limits of good faith.
Updated: 10 September 2026
Prepared and reviewed by: Ashraf Al-Khawaja
Subject
Agency is a contract by which a principal authorizes another to act in his stead in a permissible and identifiable transaction; it is special when limited to a specific matter and general when it covers all matters susceptible of delegation. Representation in litigation requires a special power of attorney expressed in specific terms. An agent must not exceed the scope of an administrative delegation granted to him.
Summary
The principal bears contractual obligations entered into by the agent within the scope of the delegation and cannot be relieved of liability toward third parties except by an express provision in the delegation. If the agent exceeds the granted authority, the principal is not bound unless it is proven that the principal knew of or consented to those acts. A contracting party's knowledge of the delegation and its content before contracting means subsequent agreements are governed by that delegation's limits, and good faith does not create obligations beyond those expressly provided. This is a general educational summary, not a judicial text or legal advice.
Practical significance
This is a general educational summary based on the points published in the official source. It does not replace the original material or a review by Ashraf Al-Khawaja before relying on it for any action.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.