Judicial principles and studies
Agency and Administrative Delegation in Contracting: Limits and Liabilities
Decision reference: تمييز حقوق هيئة عامة رقم (6324/2025).
A concise overview of agency in contracting, the limits of administrative delegation, the principal's liability for the agent's acts, and the limits of good faith.
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Judicial principles and studies
Updated: 10 September 2026
Editorial summary of a judicial principle or decision; consult the source below and do not treat the firm as the author of the decision.
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A concise overview of agency in contracting, the limits of administrative delegation, the principal's liability for the agent's acts, and the limits of good faith.
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Subject
Agency is a contract by which a principal authorizes another to act in his stead in a permissible and identifiable transaction; it is special when limited to a specific matter and general when it covers all matters susceptible of delegation. Representation in litigation requires a special power of attorney expressed in specific terms. An agent must not exceed the scope of an administrative delegation granted to him.
Summary
The principal bears contractual obligations entered into by the agent within the scope of the delegation and cannot be relieved of liability toward third parties except by an express provision in the delegation. If the agent exceeds the granted authority, the principal is not bound unless it is proven that the principal knew of or consented to those acts. A contracting party's knowledge of the delegation and its content before contracting means subsequent agreements are governed by that delegation's limits, and good faith does not create obligations beyond those expressly provided. This is a general educational summary, not a judicial text or legal advice.
Practical significance
This is a general educational summary based on the points published in the official source. It does not replace the original material or a review by Ashraf Al-Khawaja before relying on it for any action.
Frequently asked questions
Subject?
Agency is a contract by which a principal authorizes another to act in his stead in a permissible and identifiable transaction; it is special when limited to a specific matter and general when it covers all matters susceptible of delegation. Representation in litigation requires a special power of attorney expressed in specific terms. An agent must not exceed the scope of an administrative delegation granted to him.
Summary?
The principal bears contractual obligations entered into by the agent within the scope of the delegation and cannot be relieved of liability toward third parties except by an express provision in the delegation. If the agent exceeds the granted authority, the principal is not bound unless it is proven that the principal knew of or consented to those acts. A contracting party's knowledge of the delegation and its content before contracting means subsequent agreements are governed by that delegation's limits, and good faith does not create obligations beyond those expressly provided. This is a general educational summary, not a judicial text or legal advice.
Practical significance?
This is a general educational summary based on the points published in the official source. It does not replace the original material or a review by Ashraf Al-Khawaja before relying on it for any action.
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Verify the official text and latest amendments before relying on this material professionally.
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