Agency and Corporate Liability

Question 1

Instance of Express Authority

Answer 1

Where the Board of Directors passes a resolution giving an officer the authority to do an act on behalf of the corporation.

Question 2

Instance of Apparent Authority

Answer 2

Where a corporation sends its President or CFO to negotiate a contract with a third party.

Question 3

Instance of Implied Authority

Answer 3

A corporate officer’s authority intrinsic to his position to bind the corporation to minor day-to-day obligations.

Consider what a reasonable person would expect is within the normal day-to-day authority of that officer.