BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

BUSINESS LAW

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ is the authority that the principal, with knowledge or through negligence, permits the agent to assume, or which the principal holds the agent out as possessing.
A
express authority
B
implied authority
C
power of attorney
D
apparent authority
Explanation: 

Detailed explanation-1: -In a situation of apparent authority, it means that a person’s conduct gives the impression that they are allowed to act in the principal’s interest. When a real estate agent signs a binder with a client, that agent is given implied authority to act on behalf of the seller.

Detailed explanation-2: - Apparent Authority: Authority that arises when a principal, by either words or actions, causes a third party to believe that an agent has authority to act, even though the agent has no express or implied authority to act with regard to the particular matter at hand.

Detailed explanation-3: -Ostensible authority (also referred to as apparent authority) is a category of legal relationship between a principal and an agent. It looks at the authority of the agent from the perspective of the third party.

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