Principal/Agent Analogy

Suppose you and your family are about to leave on a vacation, but remember you haven't gotten around to selling a spare and unneeded car parked behind your garage.  You drive the spare car to a used car lot and sign a limited power of attorney for the salesman there to sell this car while you are gone.  With this limited power of attorney, you (the principal) authorize the car salesman (your agent) to have authority to act on your behalf in a specified and limited way and for a limited and specified purpose.

Upon return from vacation, your first stop is to check in at the car lot.  The salesman proudly announces that he has successfully sold your spare car.  With further pride, the salesman announces that he also sold your house.  He brags that he was able to get you a pretty good price for your home, doing you a great favor.  Of course, you are shocked and not happy.

You, the principal in this arrangement, had not authorized your agent, the salesman, to sell your house with the power of attorney you signed, but only to sell your car.  Yet, without your permission or agreement your agent determined to expand his role and authority.  Maybe with legal action you can get your home back, but local judges are known to be sympathetic to car lots.  Good luck with that and the legal expenses for trying to get your home back.

This is analogous to the federal government, including the Congress, the courts, and the executive, determining the extent of the powers delegated to them by the states in the Constitution.  In that arrangement, the states which adopted the Constitution and thereby created the federal government are the principal, and the federal government is the agent of the states.

Properly, only the principal may define what powers the principal has delegated to its agent.