An agency contract is a legal contract that creates a trust relationship, with the first party („the donor“) agreeing that the actions of a second party („the agent“) bind the client to subsequent agreements of the agent, as if the client had himself entered into the subsequent agreements. The agent`s power to retain the client is generally referred to as an authority in law. The agency created through an agreement may be a form of tacit authority, z.B. If a person gives his credit card to a close relative, the cardholder may be required to pay for purchases made by the parent with his credit card. Think of John Alden (1599-1687), one of the most famous agents of American literature. He would have been the first Mayflower man to make Plymouth Rock in 1620. He was a carpenter, a copper maker and a diplomat. His agency mission – of interest here – was celebrated in Henry Wadsworth Longfellow`s „The Courtship of Miles Standish.“ He was to woo Priscilla Mullins (1680), „the most beautiful girl in Plymouth,“ on behalf of Captain Miles Standish, a brave soldier too shy to propose a marriage. Standish addressed John Alden, his young and eloquent protégé, and begged Alden to speak on his behalf, unaware that Alden himself was in love with Priscilla. Alden accepted his captain`s order, even though he knew he would lose Priscilla for himself, and he was looking for the lady. But Alden winked at the point that his praised eloquence was too short, that Priscilla turned cold towards the goal of Alden`s mission, and that it eventually led him to reverse the trend in one of the most famous lines of American literature and poetry: „Why don`t you speak for yourself, John?“ John finally did: they married in Plymouth in 1623. 1. Real power exists when the agent acts on behalf of the adjudicating entity and reasonably considers that the adjudicating entity wants this measure.
 The actual authority includes the „explicit“ authority in which the client tells the officer exactly what to do and the „implicit“ authority when the officer takes steps that are reasonably necessary to achieve the Agency`s objective.  Contracting entities may also restrict the authorities of agents or remove them at their convenience. For example, a client who initially instructed a broker to purchase a property may change the instructions to limit the broker`s power to lease the property.  Both parties are required to comply with the conditions set out in the agency contract they themselves have signed.