What to expect when signing as an Authorised Agent on behalf of a purchaser

Sometimes a purchaser is unable to sign an agreement for sale and purchase because they are ill or absent, so they may enlist an ‘authorised agent’ to act on their behalf.

If you have been asked to act as an authorised agent, you should ensure that you understand your role and responsibilities. 

When signing an agreement as an authorised agent, you should make it clear that you are doing so in this capacity.  The vendor needs to know that you are acting as an authorised agent, and that you are not personally entering into the contract.

In a recent case, a vendor tried to sue the purchaser’s authorised agent for breach of contract.  The authorised agent had signed their name without qualifying that they were signing on behalf of the purchaser.  When the contract fell over, the vendor wanted to take action against the authorised agent as though they were a party to the contract.

The Court held that the vendor was not able to sue the authorised agent, because the vendor was fully aware at the time the agreement was entered into that the person signing was doing so on behalf of the purchaser.  The vendor had not intended to bind the authorised agent as a party to the agreement. 

Before you act as an authorised agent, you should enter into a written agreement with the person you are to represent.  This agreement should clearly set out the terms of your engagement as an authorised agent, especially that you are not personally liable for any contract you sign.