Can an agent legally bind a principal to a contract?

An agent can legally bind a principal to a contract if they are acting within the scope of their authority. This principle allows agents to make decisions and enter into agreements on behalf of the principal, provided that the actions taken are authorized either explicitly through instructions or implicitly through the nature of the agency relationship.

When an agent operates within the defined limits of their authority – which can be specific (clearly articulated tasks) or general (broad responsibilities associated with the agency) – any contract they enter into is binding on the principal. This understanding is fundamental in agency law, emphasizing that the actions of the agent reflect the principal's intent and permissions.

In contrast, other options suggest restrictions that are not accurate in the general context of agency law. For instance, while written authority can certainly clarify an agent’s powers, it is not an absolute requirement for all situations. A principal could grant verbal or implied authority that also enables binding contracts. Additionally, the assertion that a principal must be present or that an agent can only act in emergencies does not align with the general principles of how agency functions, where agents can act independently within their authority at any time without needing the principal's physical presence.