Legal Base of the Authority of Agents under the Principles of International Commercial Contract

The purpose of this paper is to deduce the legal base of the articles of establishment and the scope of authority of agents, agency disclosed or undisclosed, rightless or exceeding agency, sub-agency, conflict of interests, and ratification in relation to the authority of agents under PICC. In the scope of the authority of agents, PICC focuses only on relations between the principal or agent and third party. The relation between principal and agent is based on voluntary characteristics and the mandatory rules governing the authority of organizations, officers, or other entities prevailing over PICC. If a principal grants authority to an agent, it may be express or implied, regardless of specific requirements. This clarifies the legal effect of acts by agents under agency disclosed or undisclosed. In the case of an agent acting without or exceeding authority, such an act shall not bind the principal and third party. The principal may avoid the contract if a contract concluded by an agent involves the agent in a conflict of interest with the principal. Whether or not an agent is authorized to appoint more than one sub-agent depends on the conditions of the authority the principal granted, in which case the principal may explicitly exclude employment of a sub-agent, or impose a prior approval condition.