---
title: "Authority to act: definition | KYA glossary"
url: https://knowyouragent.ch/en/knowledge/glossary/authority-to-act
lang: en
updated: 2026-10-12
license: © Innopulse Consulting GmbH
---

# Authority to act

Authority to act is the power to bind another person through legal acts in their name; for AI agents, it defines what an agent may commit its [principal](https://knowyouragent.ch/en/knowledge/glossary/principal) to.

Under the law of agency, an agent acts in the name of the principal, and the effects fall on the principal as far as the authority reaches. Switzerland governs this in Articles 32 et seq. of the Code of Obligations, Germany in Sections 164 et seq. of its Civil Code (BGB), and Austria in Sections 1002 et seq. of its Civil Code (ABGB). If the authority is exceeded, the transaction generally binds the principal only after ratification.

Whether AI agents can be agents in the legal sense is disputed, because they make no declaration of intent of their own. The practical core is undisputed: whoever deploys an agent must define, and be able to prove, what the agent was authorized to do.

## Example

A company authorizes its purchasing agent to buy supplies up to CHF 500 per order. If the agent orders a machine for CHF 5,000, the action lies outside these limits. A signed mandate makes this clear beyond doubt later on.

## How it differs

Authority to act describes what an agent can do toward third parties; the instructions describe what it may do internally. Authority itself is granted by a separate legal act. An [agent mandate](https://knowyouragent.ch/en/knowledge/glossary/agent-mandate) carries this pattern into a machine-readable, verifiable format.

## In practice

- Record the scope of authorization in writing and in machine-readable form, with action types, amount limits and validity.
- Agree with contract partners in advance which evidence they accept for an agent's actions.
- Have important questions of liability and attribution reviewed legally in each case.

## Role in KYA

Section 179 of the German Civil Code makes an agent liable unless it proves its authority. KYA makes exactly this proof technically verifiable: it shows whether authority existed at the time of the action and whether it covered that action.

Related check: [Mandate validity](https://knowyouragent.ch/en/method/checks) (`mandate_validity`). Was the mandate valid at the time of the action?

[Verify now: open a matching example](https://knowyouragent.ch/en/verify?beispiel=abgelehnt)

## Frequently asked questions

### Can an AI agent be an agent in the legal sense?

That is disputed. An AI agent makes no declaration of intent of its own; many therefore attribute its actions directly to whoever deploys it, while others apply the rules of agency by analogy. In practice, clearly defined and provable limits are what count.

### What happens if an agent exceeds its authority?

Under the rules of agency, a transaction outside the authority generally binds the principal only if ratified, for example under Article 38 of the Swiss Code of Obligations, Section 177 BGB or Section 1016 ABGB. How this applies to AI agents depends on the individual case.

### How do you prove an agent's authority?

With a signed mandate naming issuer, agent, principal, permitted actions, limits and validity, complemented by a decision and a receipt for the specific action. KYA verifies this evidence independently.

General information, not legal advice. The statutes and the circumstances of each case are decisive.

## Sources

- [Swiss Code of Obligations (CO), Art. 32 et seq.](https://www.fedlex.admin.ch/eli/cc/27/317_321_377/de#art_32)
- [German Civil Code (BGB), Section 164](https://www.gesetze-im-internet.de/bgb/__164.html)
- [BGB, Section 179](https://www.gesetze-im-internet.de/bgb/__179.html)
- [Austrian Civil Code (ABGB), Section 1002](https://www.ris.bka.gv.at/NormDokument.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10001622&Paragraf=1002)

## Related terms

- [Agent mandate](https://knowyouragent.ch/en/knowledge/glossary/agent-mandate)
- [Principal](https://knowyouragent.ch/en/knowledge/glossary/principal)
- [Blanket authority](https://knowyouragent.ch/en/knowledge/glossary/blanket-authority)
- [Delegation chain](https://knowyouragent.ch/en/knowledge/glossary/delegation-chain)

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Quelle: https://knowyouragent.ch/en/knowledge/glossary/authority-to-act · KYA – Know Your Agent