There is a party that is represented by another party in accordance with the authority granted in order to create and manage business relationship with third parties or outsiders (those that we have an interaction with: principle: is represented by an agent who will have then dealing with a third party. (lets say we meet someone neutral, someone gets an agent to represent the fans) employee, employer relationship these are common law rules. There are two types of authority: actual, apparent. When we say actual authority it"s the vested authority that is expressly stated or that is implied in the execution of the agency. So when we say express it could be words or written statement. It"s a necessary condition in order to put in execution the authority. So it"s not spelled out directly but it"s necessary to execute the authority. First one is suppose to be related to actual position (level) in an organization.