An agenbsp;relationship is legally created as follows：
·Authorization by Appoi
The usual method of creating an agenbsp;relationship is by express authorization；that is，a person is appointed to absp;for and on behalf of another.No particular form of language is necessary for the appoi of an agent.It is suffit that the words ud indicate that one person wishes another to reprent him.In many instahe authorization of the agent could be oral，or done by a Board of Directors Resolution.In addition to an agents express authority，an agent also has what is called “ialbrary” authority to perform any absp;reasonably necessary to execute the express authority given to him and to do any absp;which，acc to the of the trade，usually apanies the transa for whibsp;he is authorized to absp;as agent.Here is where many issues bsp;ari if the agreement between the pany and the el partner is not clear regarding the partner’s authority and limitations.
·Authorization by Principal’s duct
Authorization by Principal’s dubsp;is also legally referred to as “Agenbsp;of Estoppel”.An agent has apparent authority when the principal，by his words or duct，reasonably leads a third party to believe that subsp;a person has the authority to bind the principal.Any ducluding words that gives the agent reason to believe the principal ts to his ag as agent is suffit to create an agency.If a person knowingly and without obje permits another to absp;as his agent，the law will find in this dubsp;an expression of authorization to the agent，and the principal will not be permitted to deny that the agent was in fabsp;authorized.In other words，the principal is “estopped” from denying the agency，thus proteg the third party who dealt with the agent in good faith.
Generally the law of agenbsp;is applicable in the same manner to the United States Gover and state purchasing agencies as in the private ctor.It should be noted，however，gover trag officers and state purchasing officers derive their power from the statutes whibsp;created their anizations.In most cas，the authority and limits of authority granted to federal and state trag officers is expressly defined by the statutes.The important exception to this general statement，however，is the law dealing with apparent authority.Corporations，as principals，are bound to the extent of the power they have apparently given their agents，while the United States Gover is bound only to the extent of the power it has actually or expressly given its agents，and unauthorized absp;of subsp;agents does not stop the Gover from asrting their invalidity.Therefore，employees（agents）of the US Gover posss only actual authority whibsp;includes both express and implied powers.It should also be noted that，while the scope of a trag officer’s authority is only limited by the statute ferring the authority，it is not unusual to find that the authority delegated may also be limited by regulations promulgated pursuant to statutes.The regulatory restris on the agents authority when published in the Federal Register are binding in transas even though the other party did not have actual knowledge of the regulations.Therefore，he who deals with an agent of the gover must look to his authority，whibsp;will not be presumed but must be established.He ot rely upon the scope of dealing or apparent authority as in the bsp;of a private agent.However，when the Gover deals with employees（agents）of bidders or tractors，the Gover may rely upon the apparent authority as well as the actual authority of the employee reprenting the tractor.