In legal terms, what does an agent's authority depend on?

An agent's authority primarily depends on the consent given by the principal. This means that the principal, who is the party that engages the agent, must explicitly grant the agent the right to act on their behalf in transactions or agreements. The nature and extent of this authority can be specified through a written contract, verbal agreement, or implied by the actions of both parties.

The relationship between an agent and principal is grounded in agency law, which establishes that the actions taken by the agent are legally binding on the principal, as long as those actions fall within the scope of the authority granted by the principal. This principle ensures that the agent acts in accordance with the principal's wishes and within the boundaries set by the principal, thus protecting both parties in the business relationship.

Factors such as the balance of the contract's value, the experience of the agent, and the duration of time the agent has been in business may play roles in the overall efficacy and professionalism of the agent's performance, but they do not fundamentally determine the legal authority granted to the agent. The key factor that establishes the agent's ability to act is the principal's consent, which defines the parameters of their relationship.