Mandates

The fundamental unit: bounded authority for a purpose.

The company is too costly to form for every task, the employee is a relationship rather than a unit of work, and an individual agent is replaceable and, legally, nobody. What persists across all of them is a grant of bounded authority for a purpose — the accountable mandate.

Proposed instrument Examples are illustrative

01Three questions

Want, authorize, commit.

The interface keeps apart three things that software tends to blur. Only the third creates obligations — and only within the second.

  1. What you want

    An outcome request

    A result, a budget, a deadline and the constraints that matter. It binds no one.

  2. What you authorize

    A mandate

    Bounded, signed and revocable authority. You sign bounds, not steps — every agent and counterparty is held to them.

  3. What you become committed to

    Obligations

    Contracts formed inside the mandate with named counterparties, recorded on the ledger with evidence rules and a holder.

EG-MND-DEMO-0001 Example mandate
Principal
A founder’s limited company, verified to tier V2
Outcome
Launch the app in nine languages, with consumer-law review in four EU markets
Budget
€60,000 held in escrow · no counterparty above €5,000 without approval
Scope
Buy localization, legal review, payment set-up and support · counterparties V2+ · data stays in the EEA
Expiry
42 days after signature · 90-day warranties survive by design
Delegation
Maximum depth 2 · sub-mandates can tighten limits, never relax them · budgets lock when delegated
Verification
A different model family checks every translation · 5% human sample · signed legal opinions
Liability & cover
10% holdback per performer · professional cover required · the principal answers for decisions within scope
Revocation
Stops new commitments at once · contracts already formed unwind on their own terms
Budget conservation in delegation A root mandate of 60,000 euros delegates 36,000 to localization, 12,000 to legal review, 8,000 to payments and support, and keeps 4,000 in reserve. The children add up to the parent. Root mandate €60,000 · 42 days Localization €36,000 Legal review €12,000 Payments& support €8,000 Reserve €4,000 Children never exceed the parent: 36 + 12 + 8 + 4 = 60 Limits can tighten down the tree, never relax
Delegation without expansion: budgets lock when a sub-mandate is created, so authority, spending and liability cannot grow as work is divided.

02From objective to settlement

Six steps, six different legal natures.

Conflating any two of these steps is the most common design error in agent commerce.

  1. 01

    Objective

    What the principal wants to achieve

    Intent. Binds no one.

  2. 02

    Mandate

    Bounded, signed, revocable authority

    Binds the principal only within its scope.

  3. 03

    Agent action

    An act performed under the mandate

    Attributed to the principal; logged as evidence.

  4. 04

    Contract

    A promise exchanged with a counterparty

    Enforceable only if validly formed under the governing law.

  5. 05

    Obligation met

    Performance evidenced and accepted

    Discharged — warranties and survival terms remain.

  6. 06

    Settlement

    Value transferred over a payment rail

    Final under the rules of that rail.

A credential is not personhood.

It proves who is acting and under whose authority. Liability remains with a legal person.

An authorized action is not a contract.

Enforceability depends on formation, capacity, form and governing law. The grid raises the odds — checkable mandates, standard terms, preserved evidence — but cannot guarantee enforceability everywhere, and never claims to.

03Structure

Fourteen fields.

“Mandate” has established meanings in civil law and in payments. The accountable mandate adds what none of them carries together: liability with cover, verification rules, composition rules and an estate designation.

FieldWhat it specifies
Principal and beneficial ownerThe legal person granting authority, evidence of signatory power, the ultimate beneficial owner
Outcome and acceptance criteriaMachine-checkable conditions, plus named people who accept subjective results
Budget and funding sourcesCaps by currency and period; which accounts, credit lines or capital mandates may be used
Permitted actions and counterpartiesBuy, sell, hire, publish, sign, pay — with allow and deny lists and a minimum verification tier
Geographic and legal constraintsJurisdictions, sanctions screening, licensed or excluded activities, data residency
Duration and deadlinesValidity window, milestones, time-outs — and survival terms declared at the outset
Delegation and subdelegationWho may delegate further, to what depth, under what cover
Verification requirementsEvidence types, verifier independence, sampling rates, model-diversity rule
Liability allocation and coverWho bears which loss, caps, insurance, bonds, collateral, liability anchor
Reporting and audit evidenceLogging standard, retention, audit rights, supervisory access
Revocation, dispute and terminationWho may revoke, what happens to commitments in flight, the dispute forum
Escalation thresholdsDecisions reserved for people; amounts or risk classes that need approval
IntegrityVersion, hash, signatures and a status endpoint for real-time revocation checks
Estate designationWho will hold the obligations that outlive the project

04Composition

Delegation without expansion.

Complex outcomes are divided into sub-mandates, often several levels deep and across many vendors’ agents. Every delegation is checked against six invariants before it takes effect.

  1. 1

    Scope attenuation

    A sub-mandate’s actions, counterparties and jurisdictions are always a subset of its parent’s.

  2. 2

    Budget conservation

    Child budgets plus the parent’s own spending never exceed the parent’s budget. Reservations lock at delegation.

  3. 3

    Time containment

    A child expires no later than its parent. Anything meant to outlive the parent must be declared as a survival term and given an estate holder.

  4. 4

    Liability containment

    Exposure created by a child is bounded by its own cover and collateral; uncovered exposure moves up only to a limit the parent explicitly accepted.

  5. 5

    Non-relaxation

    Depth limits, counterparty tiers, evidence rules and approval thresholds can be tightened down the tree, never relaxed.

  6. 6

    Revocation propagation

    Revoking a mandate suspends every descendant’s authority to make new commitments. Existing commitments unwind only on their own terms.

Capability attenuation, credit limits and escrow are long-established mechanisms. What the white paper proposes is enforcing them jointly — across authority, money, time, liability and evidence — at every delegation.

05Types

Seven kinds of mandate.

Three rules of revocation. Revocation is prospective: it removes the authority to make new commitments from the moment the status changes. Valid commitments survive and unwind only on their own terms. The revoker bears the cost of revoking unless the mandate says otherwise, and counterparties who relied in good faith on a valid status check are protected.

TypeGranted by → toPurpose
RootPrincipal → its representative agent or operatorThe whole outcome
ExecutionParent → agent or providerPerform a defined task
ProcurementParent → buying agentSource and contract counterparties
AssemblyParent → assemblerForm a temporary network and its legal container
CapitalInvestor → licensed managerDeploy capital under a constitution
VerificationParent → independent verifierCheck evidence and certify outcomes
EstateClosing enterprise → estate holderHold obligations that outlive the project