Why does an authorized agent usually remain outside the contract with a third party?

In the law of agency, an authorized agent typically remains outside the contractual relationship with a third party because the agent is acting on behalf of the principal to conclude legal transactions.12

The fundamental purpose of this arrangement is to allow the principal to extend their sphere of activity by having another person perform work or manage business affairs. When an agent acts within their authority, the legal effect is that only the principal is bound by the resulting contract.12

The agent generally avoids personal liability because they are merely the representative facilitating the principal's external business relations. However, this general rule does not apply if the agent explicitly contracts for themselves—such as when a third party requires the agent’s personal credit—or in specific instances like "undisclosed agency" or authorizations conferred for the agent's own benefit, where the agent may be held personally accountable.12