The green line indicates the creation of legal rights and duties.
When an agent acts on behalf of their principal, they create legal rights and duties directly between the principal and the third party. The legal effect is just as if the principal had personally dealt with the third party. For example, if the agent purchases property for the principal, the principal becomes the owner of that property. If the agent receives money on behalf of the principal, the payment is considered to have been made to the principal. When an agent enters into contracts on behalf of their principal, it is the principal who becomes a party to that contract: normally the agent does not.