when acting as an agent you are often protected from liability as long as you act with care reasonableness and transparency 
agent liabilityan agent is often liable to their principal if they violate their duty or deviate from a reasonable expected action performed on behalf of the other party this may be the result of exceeding the authority they ve been given acting in misconduct being unreasonably negligent or any other situation where the principal may incur a loss that could have potentially been avoided in some situations when the agent performs a task for another without disclosing they are an agent they may be considered liable because the agent was presumed to be a principal an agent is also commonly liable when the agent expressly incurs a personal liability by entering into an associated agreement agency by necessitythere is also agency by necessity in which an agent is appointed to act on behalf of a client who is physically or mentally incapable of making a decision this is not always a case of incapacitation business owners for example might designate agents to handle unexpected issues that occur in their absence for example if a ceo was on a flight and unreachable yet an emergency business decision needed to be made agency by necessity could be used agency by necessity is most often executed in times of emergency or urgency when the primary party is not available to make a decision in these situations courts would recognize a third party making the decision if that party was given power by the primary party to do so the third party would be responsible for acting in the primary party s best interest estate planning often sees agency by necessity though an individual may have created a will outlining how an estate should be disbursed at their time of death there could be situations where the person became incapacitated before needed adjustments to the will were made here agency by necessity could be used by a trusted party 