Asked by
Madison Dowden
on Nov 10, 2024Verified
A principal is not bound in contract with the third party with whom the agent dealt if the agent is
A) within his express authority.
B) within his implied authority.
C) within his apparent authority.
D) outside his authority but the principal ratified it.
E) outside his actual and apparent authority.
Express Authority
Pertains to the power explicitly granted by one party to another, typically in writing, to perform specific acts or functions.
Implied Authority
Powers not expressly stated but assumed to be granted in order for an individual to carry out duties effectively.
Apparent Authority
A situation where a third party reasonably believes an individual has the authority to act on behalf of another (such as an employer), even if that person does not have actual authority.
- Absorb the notions of actual, implied, and apparent authority and their effects on the accountabilities and responsibilities of agents and principals.
Verified Answer
SC
Learning Objectives
- Absorb the notions of actual, implied, and apparent authority and their effects on the accountabilities and responsibilities of agents and principals.