umboðsaðila

An umboðsaðili is a person or organization that has been authorized to act on behalf of another person or organization, known as the principal, in specified matters. The authorization usually arises from a contract of agency or a power of attorney and can be limited to particular transactions or grant broad representation. Common examples include real estate agents representing sellers or buyers, lawyers acting for clients, and distributors or intermediaries empowered to sign contracts for a company.

Authority and duties: The agent’s powers are limited to what is granted by the mandate. They must act in good faith, disclose relevant information, avoid conflicts of interest, and maintain proper records. The principal is generally bound by the agent’s actions within the scope of authority, while the agent may be liable for overstepping limits or breaching fiduciary duties. In some cases, apparent authority—where third parties reasonably believe the agent is authorized—can bind the principal even if the agent lacks explicit authority.

Relationship and termination: An umboðsaðili is not necessarily an employee; the arrangement is typically governed by a contract but can also arise from conduct and law. The mandate can end when the task is completed, by notice, or by revocation of authority. Termination may also occur if the principal discontinues the authorization or the relationship is dissolved.

Significance: Umboðsáðili play a key role in commerce, law, and administration by enabling representation when the principal cannot act directly. The concept covers a range of roles, from professional advisors to commercial intermediaries. See also: power of attorney, agency, representation, mandate.