Agent's Authority in Law
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Agent's Authority in Law

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@VividNashville

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Questions and Answers

What type of authority is described as being directly granted by the principal, which can be general or specific?

  • Express authority (correct)
  • Customary authority
  • Implied authority
  • Apparent authority

    • Which of the following best describes implied authority?

  • Authority that arises from the actions of the agent
  • Authority that exists only in writing
  • Authority that relies solely on third party perceptions
  • Authority to act in ways normally necessary for carrying out a principal's express authority (correct)

    • What term is used when an agent appears to have authority to act on behalf of a principal, despite not having actual authority?

  • Delegated authority
  • Express authority
  • Apparent authority (correct)
  • Implied authority

    • In which scenario must express authority always be given in writing?

    <p>For buying or selling land on behalf of the principal</p> Signup and view all the answers

    Which of the following is NOT a characteristic of apparent authority?

    <p>It requires actual authority to be effective</p> Signup and view all the answers

    What is an example of implied authority?

    <p>An agent chooses to use their discretion to hire additional staff without prior express consent</p> Signup and view all the answers

    What distinguishes an agent from a regular employee or contractor?

    <p>Authority to bind the principal in legal matters</p> Signup and view all the answers

    Which of the following statements about authority types is incorrect?

    <p>Implied authority exists only in verbal agreements.</p> Signup and view all the answers

    Study Notes

    An Agent’s Authority

    • An agent has the power to legally represent and bind a principal.
    • An agent’s authority can be established through express, implied, or apparent (ostensible) authorization.

    Express Grants of Authority

    • Express authority can be general, giving the agent the power to represent the principal in any legal matter, or specific, limiting the agent’s authority to specific matters.
    • Express authorization can be given orally or in writing, though some situations, such as appointing an agent to buy or sell land, require written authorization.

    Implied Authority

    • Implied authority arises when an agent with express authority is granted additional, inferred power to act on behalf of the principal.
    • This implied authority can extend to actions considered “normally or necessarily incidental to the authorized acts,” actions commonly associated with the agent’s position, or actions customary for agents in that particular industry.

    Apparent/Ostensible Authority

    • Apparent authority occurs when a person, lacking actual authority, acts on behalf of an employer and creates the impression to third parties that they have the power to represent the employer as an agent.
    • The employer may be found legally bound by the actions of the employee if they placed the employee in a position where it appeared they had the authority to act as their agent.
    • This arises from the employer’s actions and the reliance of third parties on the appearance of authority, thus creating apparent authority with the same legal effect as actual authority.

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    Related Documents

    Law of Agency PDF

    Description

    This quiz explores the different types of authority an agent can possess, including express, implied, and apparent authority. It covers the nuances of how these authorities can be established and the implications of each type in legal contexts. Test your understanding of these essential concepts in agency law.

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