Agent's Authority in Law

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

Which of the following best describes implied authority?

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

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

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

What is an example of implied authority?

What distinguishes an agent from a regular employee or contractor?

Which of the following statements about authority types is incorrect?

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.

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.