What is true about Ahmar's agency agreement with Kent Regal Ltd?

Ahmar's agency agreement with Kent Regal Ltd allows him to act on their behalf, which means he has the authority to enter into legal relationships for the company. This is foundational in agency law, where an agent is empowered to perform tasks and make decisions that legally bind the principal—in this case, Kent Regal Ltd. By being able to bring the company into legal relationships with third parties, Ahmar is fulfilling the core function of an agent, which is to represent the interests of the principal and carry out actions as specified within the scope of their agreement.

The nature of agency relationships generally means that actions taken by the agent within the authority granted by the principal are legally recognized; thus, any dealings Ahmar engages in for Kent Regal Ltd not only represent the company’s interests but also establish legal obligations and rights that are enforceable. This authority can be crucial for business operations as it enables the company to enter into contracts, negotiate terms, and engage with customers or other stakeholders effectively. Therefore, the truth about the agency agreement is encapsulated by Ahmar's ability to act for Kent Regal Ltd in this manner.