In Oklahoma, a principal-agent relationship or employer-employee relationship exists when there is a mutual understanding that one party (the principal or employer) will direct and control the actions of another party (the agent or employee). If a principal or employer is sued and there is no issue as to the relationship, then the acts of the agent or employee will be considered as the acts of the principal or employer. Oklahoma's law recognizes two primary types of principal-agent relationships: that of a general agent and that of a special agent. A general agent is one who is authorized to act on the behalf of the principal in all matters regarding the business of the principal. A special agent is one who is authorized to act on the behalf of the principal in specific matters or transactions only. In cases where the principal or employer is sued and there is no issue as to the relationship, the acts of the agent or employee will be considered as the acts of the principal or employer. This means that the principal or employer may be held liable for any acts of wrongful conduct or negligence committed by the agent or employee. The principal or employer is also responsible for any contractual obligations which the agent or employee may enter into on behalf of the principal or employer.