Does exceeding the scope of authorization invalidate the agency contract?
General Chapter
Al-Mughni
Book of Agency
Primary text
The agency contract is not invalidated by transgression in the matter for which one was authorized, such as the agent wearing the garment or riding the animal he was instructed to sell. This is the primary view held by adherents of the Shafi'i school. The evidence supports this because when the agent acts, he acts with the permission of the principal, thus the action is valid, just as if he had not transgressed. Agency is a grant of permission to act which includes a trust (*amanah*). If the trust aspect is negated by transgression, the permission to act remains intact.
Supporting text
An alternative view holds that the agency contract is invalidated by transgression because it is a contract of trust (*amanah*), which is nullified by transgression, similar to a deposit (*wadia*). This view is rejected because the agency involves permission to act, whereas a deposit is purely a trust where transgression constitutes betrayal.