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 Florida, the principal-agent relationship is governed by common law principles as well as specific statutes that may apply depending on the context of the agency. A principal can give an agent the authority to act on their behalf and enter into contracts or legal obligations within the scope of the agency. This authority can be 'actual authority,' which is expressly granted by the principal to the agent, either in writing or verbally. Additionally, an agent may have 'apparent authority,' which arises when a principal's actions or communications to third parties suggest that the agent is authorized to act, even if the principal has not explicitly given such authority. Apparent authority depends on the reasonable beliefs of third parties interacting with the agent. If a third party reasonably believes the agent has authority based on the principal's conduct, the principal may be bound by the agent's actions. Florida courts will look at the interactions between the principal, agent, and third parties to determine whether apparent authority exists. It's important to note that the principal can also be bound by the agent's actions if the principal ratifies those actions, even if the agent exceeded their authority at the time of the act.