How is an agent authorized according to established principles?

An agent is authorized by laws, which means that there are specific legal frameworks and regulations that dictate how an agent can be appointed. This process often involves formal procedures set forth either by statutes or bylaws that govern organizations. For example, within a corporation, the board of directors has the authority to elect or appoint officers who will serve as agents of the corporation, thus granting them the power to act on behalf of the organization.

The process of designating an agent through legal and formal means ensures that the agent operates within their authorized capacity and adheres to fiduciary duties. By establishing clear guidelines on how agents are appointed, organizations can maintain accountability and ensure that their agents act in the best interest of the party they represent.