An agent shall sign a contract in the name of the principal in accordance with the scope of authorization. The power of attorney signed by the agent and the principal has clearly defined the scope of the agent's agency authority, which is legally binding and protected by law. Therefore, when an agent enters into a contract beyond the scope of authorization, he must bear the legal consequences arising therefrom. For example, Wang, a salesman of Company A, signed a steel purchase and sale contract with Company B in the name of Company A, with a total amount of RMB 6,543,800+0.2 million. After the contract was signed, Company B gave Wang an advance payment of 30,000 yuan. After Wang received the money, he deposited it in his account. After the performance of the contract, Wang naturally could not provide steel to Company B, nor did he refund the 30,000 yuan advance payment of Company B. Company B then sued Company A where Wang was located as the defendant and demanded that Company A compensate for the losses. The court found that although Wang was a salesman of company A, the company never authorized Wang to sign a steel purchase and sale contract with company B. Wang's behavior exceeded the agency authority, and the contract signed with company B was invalid. The court then ruled that Wang should take full responsibility, return the advance payment of 30,000 yuan from Company B and pay relevant interest.

Legal objectivity:

Article 162 of the Civil Code: A civil juristic act carried out by an agent in the name of the principal within the scope of agency authority is effective for the principal. Article 165 of the Civil Code, if the power of attorney is in written form, the power of attorney shall specify the name of the agent, matters of agency, authority and time limit, and shall be signed or sealed by the client. Article 164 of the Civil Law If an agent fails to perform or fails to perform his duties completely, thus causing damage to the principal, he shall bear civil liability. If the agent and the counterpart collude maliciously and damage the legitimate rights and interests of the principal, the agent and the counterpart shall bear joint liability.