The power of a gratuitous agent to affect the principal's relationship with third parties is the same as that of a paid agent.

Question

Quizplus · Accepted Answer

Both gratuitous agents (who work for free) and paid agents have the authority to bind their principals in transactions with third parties, assuming they act within the scope of their authority. The compensation of the agent does not affect the extent of their power to affect the principal's legal relationships.

The Power of a Gratuitous Agent to Affect the Principal's