An arrangement where an individual is authorized to act on behalf of another person or company is established through:

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The law of agency establishes an arrangement in which one individual, known as the agent, is granted the authority to act on behalf of another individual or entity, referred to as the principal. This relationship is fundamental in various contexts, including business dealings and legal transactions. In this relationship, the agent is empowered to make decisions and take actions that bind the principal, as long as those actions stay within the scope of the authority granted.

When the law of agency is in place, it is important for both the principal and the agent to understand their rights and responsibilities. The principal may hold the agent accountable for their actions, especially if the agent exceeds their given authority. At the same time, agents must act in the best interests of their principals under the fiduciary duty inherent in this relationship.

Other concepts mentioned, like estoppel, the law of adhesion, and aleatory contracts, relate to different legal principles. Estoppel prevents a party from arguing something contrary to a previous claim or behavior when another party has relied on that claim. The law of adhesion involves contracts drafted by one party and offered to another on a "take it or leave it" basis, lacking negotiation. An aleatory contract is one where the performance of one party depends on an uncertain event.

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