Authority of Agents & Principals

Question 1

What is an actual authority

Answer 1

When a principal creates an express agency relationship, the agent holds whatever authority is provided for in the agreement

Question 2

Example of implied authority

Answer 2

An apartment manager has the implied authority to receive rents, make repairs and have tenants sign lease agreements

Question 3

What is apparent agency

Answer 3

agent does not have an express agreement but still has authority to act as an agent for a principal because of the appearance of having that authority

Question 4

What is lingering apparent agency

Answer 4

principal fires an agent (ends the actual or express agreement), but the agent continues to act as an employee. The agency continues until properly terminated