Intent:
The person that wrote the check or who gave us the order that all other authority is delegated. We want to
keep an unbroken chain of command of each primary agent according to what responsibilities they’ve been assigned to.
Benefit:
When we have a signature on a piece of paper, we know the responsibilities that signature carries and we
can act appropriately.
Examples: When talking to a window manufacturer he may say, “go ahead and make the windows according to those
dimensions.” The window salesman has not been assigned as a primary agent, thus, does not have the authority to
make the decision. Therefore, we would not act on his authority alone.
Definition
Unbroken chain of authority starting with the signature on the contract. This gives authority to
various parties and limits their authority to what degree the primary agent defines. Each person with a delegated
authority is assigned by the primary agent and is also considered a primary agent to which extent they have an
assigned responsibility.