Power and Authority of Agents

Question 1

What power does the agent have?

Answer 1

Agents acts have the power to bind the Principal if done within the scope of power authorized by the agency relationship

An agent has no power to bind the principal beyond the actual authority (express or implied) granted to the agent by the agency relationship.

Question 2

What are the two types of Actual Authority?

Answer 2

Express or Implied

Question 3

What is apparent authority.

Answer 3

Arises based on Principal’s representations to a third party where the third party
is led to believe Agent is acting with Principal’s authority.

Principal is accountable for the results of third-party beliefs about an actor’s authority to act when the belief is reasonable and is traceable to a manifestation of the principal.