negotiate and conclude the terms of an agreement, especially when the agent is a leader of the company organization. In such discretion, it may sometimes happen that the officer acts outside the scope of his powers. If this is the case, the contractor is liable to the third party for the breach of the agent`s power of attorney guarantee (see section 9 below). However, this can be a cold comfort for the third party, who often prefers to take care of the contract concluded with the client. 15.1.1 Agency law plays an important role in commercial transactions, especially with the advent of modern society, which is considered to be favourable to the law because of a legal fiction and capable of carrying out autonomous operations. As a company is not a real person, it must act by man. .