Can you please help me paraphrase?

Dear All:
I trust you receive this well. You are kindly requested to help me in rewording the below text. I have already extracted it from a book and summarized it to the best of my abilities. Now I only need a little help in rewording since my language skills are not up to the desired level.

Thank you in advance.



Implied authority is the authority an agent reasonably assumes he or she has that relates to the express authority granted by the principal. If, for example, the agency agreement gives the agent the express authority to purchase goods for the principal, the agent has implied authority to purchase the goods using the principal’s credit. Remember that implied authority is the relationship between principal and agent in which the principal implies the authority. This authority is sometimes called incidental authority.

Apparent authority is the authority that a third party may reasonably assume an agent possesses, despite the fact that the agent does not actually possess such authority.

A principal is liable for the torts and crimes of the agent if they are committed at the direction of the principal or while the agent id performing authorized duties during the ordinary course of the agency. Thus, if an agent makes a fraudulent statement in a contract within the scope of his or her authority, the principal is responsible. Both the principal and the agent may be held liable for an agent’s torts or crimes committed while the agent is acting within the scope of his or her authority.


· An agent must obey all the principal’s reasonable and lawful orders and instructions within the scope of the agency contract.

· An agent may not perform any act that would betray the principal’s trust.

· An agent may not buy his or her own property for the principal, sell the principal’s property to himself or herself, or compete with the principal in anyway, without the principal’s knowledge and consent.

· An agent is liable for losses to the principal resulting from the agent’s incompetence.

· An agent must remit to the principal all profits from contracts made by the agent unless other provisions are made in the agency agreement.

· A principal must pay the agent compensation agreed to in the contract.

· If a person acts as agent for more than one party with their knowledge, the agent is entitled to receive compensation from each principal.

· A principal must reimburse the agent for any money advanced by the agent in carrying out the principal’s instructions and for debts legally paid to third parties on behalf of the principal.

· A principal must reimburse the agent for any loss or damage suffered by the agent in the
legitimate performance of duties.

A principal is responsible to third parties for all agreements made by the agent on behalf of the principal if the agent acted within the scope of his or her authority, either express or implied. Third parties are liable to the principal on all lawful contracts made by his or her agent.

· Disclosed principal

o When the agent informs the third party that he or she is acting on behalf of another, and makes the third party aware of the identity on the principal, the principal is known as a disclosed principal. For example, when an agent signs a contract “Louise Smith, by Susan Jacobs, Agent” or merely signs the principal’s name, he or she is acting on behalf of a disclosed principal.

· Partially disclosed principal

o When the agent informs the third party that he or she is acting on behalf of another, but the identity of the principal is unknown to the third party, the principal is known as partially disclosed principal. Because the third party does not know the identity of the principal, the agent can be help personally responsible to the third party if the agent acts with authority, and the third party later learns of the identity of the principal, the third party may also hold the principal liable.

· Undisclosed principal

o Similarly, if the agent acts with authority, and the third party later learns of the fact of the agency and the identity of the principal, the third party may also hold the principal liable.
An agency contract is terminated by an act of the parties when the principal and the agent have mutually agreed on termination, the principal has dismissed the agent, or the agent had given up the position.