BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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warranty of the principal’s capacity
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express authority
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implied authority
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apparent authority
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Detailed explanation-1: -Expressed authority is a type of authority that occurs when it is clearly declared or granted verbally or in writing by the principal to the agent. For example, expressed authority relates to when an agent is given permission by the principal (in writing or verbally) to act or complete transactions on their behalf.
Detailed explanation-2: -Express authority is the authority that an agent has in writing in the contract with the insurer that the agent represents. Express authority spells out in contract form the activities that the agent has the power to perform on behalf of the insurer.
Detailed explanation-3: -Express authority occurs when an agent is working on behalf of his or her company to act on behalf of a principal. For example, a life insurance agent may have express authority under their company.