Legal basis: "Civil Code of the People's Republic of China"
Article 162: Civil legal acts performed by an agent in the name of the principal within the scope of agency authority, Effective against the principal.
Article 163: Agency includes principal agent and legal agent. The entrusted agent shall exercise the power of agency in accordance with the entrustment of the principal. The legal agent shall exercise the power of agency in accordance with the provisions of the law.
Article 171 If the actor has no agency authority, exceeds the agency authority, or continues to act as an agent after the agency authority is terminated, it will not be effective against the principal without ratification by the principal.
The counterparty may urge the principal to ratify it within thirty days from the date of receipt of the notice. If the principal fails to declare, it will be deemed as a refusal to ratify. Before the act performed by the actor is ratified, the counterparty in good faith has the right to revoke it. Revocation shall be effected by notification. If the act performed by the actor has not been ratified, the counterparty in good faith has the right to require the actor to perform the debt or to require the actor to compensate for the damage suffered. However, the scope of compensation shall not exceed the benefits that the counterparty can obtain when ratified by the agent. If the counterparty knows or should know that the perpetrator has no authority to act, the counterparty and the perpetrator shall bear liability based on their respective faults.
Article 172 If the actor has no agency power, exceeds the agency power, or after the termination of the agency power, the counterparty has reason to believe that the actor has the agency power, the agency act is valid.