An agent is a person who acts for a principal in dealings with third parties. The agent stands in the shoes of the principal when entering into transactions with third parties on behalf of the principal. An agent can act for the principal in numerous ways and for different purposes. One such purpose would the execution of a contract on behalf of the principal. A typical example would be a leasing agent entering into a lease with a tenant of property owned by the owner/principal. In order for an agent to bind the principal by agent’s acts, the agent must have received authority to so act from the principal.