In a principal-agent relationship, the principal gives the agent authority to act on behalf of the principal, and to bind or obligate the principal to contracts and other legal obligations, as permitted by the scope of the agency (authority). An agent’s authority may be sufficient to bind or obligate the principal if the authority was expressly given to the agent (actual authority), or if it was implied to other persons that the agent had authority to act on behalf of the principal (apparent authority)—such as by the principal’s adoption of the agent’s prior actions on behalf of the principal.

In Mississippi, the principal-agent relationship is governed by common law principles as well as specific state statutes. The principal grants the agent authority to act on their behalf within the scope of the agency relationship. This authority can be actual authority, which is expressly given by the principal to the agent, allowing the agent to make legal commitments on behalf of the principal. Alternatively, the agent may have apparent authority, which is based on the representations made to third parties by the principal, leading them to reasonably believe that the agent is authorized to act. If a principal knowingly allows an agent to act in a certain way or adopts the agent's actions, this can create apparent authority. In Mississippi, for an agent to bind the principal, the agent must have either actual or apparent authority, and the third party involved must have a reasonable belief in the agent's authority. The specifics of these relationships can be complex and may vary depending on the context and the agreements in place, so consulting with an attorney for particular situations is advisable.