In the context of agency, who is responsible for the acts of an agent within their authority?

In the context of agency relationships, the principal is ultimately responsible for the acts of the agent performed within the scope of their authority. When an agent acts on behalf of a principal, the principal is liable for the actions taken by the agent as long as those actions fall within the authority granted. This principle is rooted in the concept of agency law, which establishes that the agent acts as a representative of the principal, thus creating a legal obligation for the principal for the actions undertaken by the agent.

For instance, in an insurance context, if an insurance agent interacts with clients and conducts business on behalf of the insurer (the principal), any actions taken by the agent that are authorized by the insurer would bind the insurer. Therefore, if the agent makes commitments or representations to a client while executing their duties, the insurer must uphold those commitments, provided the agent was acting within their given authority.

In this framework, the customer, independent contractor, and the principal only do not fully capture the comprehensive liability incurred by the principal in regards to their agent's conduct. Hence, the correct choice emphasizes the responsibility that falls on the principal in agency relationships.