Are contracts concluded by an agent considered valid or void, given that he signed in the name of the principal without proving his capacity or the agent's identity, or providing a copy of the power of attorney to the contracting company?
If a person deputizes another to make a purchase, the contract is valid whether the agent explicitly states that the purchase is for the principal or not, even if the agent makes the contract in his own name. It appears that the agent intended to simplify the transaction by making it in the principal's name and signing on his behalf, so that the rights of the contract would be linked to the principal. If the contract were in the agent's name, it would be difficult for the principal to deal directly with the seller regarding issues such as returns and maintenance. The majority of jurists hold that an agent may act as a principal and is not required to disclose the agency, and the purchase is for the principal, but the agent is held liable.
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- Original fatwa ID
- 18592
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