BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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express authority
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implied authority
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power of attorney
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apparent authority
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Detailed explanation-1: -An agent’s power to act on behalf of a principal, intentionally granted by the principal as a result of the principal’s conduct, but without an express agreement.
Detailed explanation-2: -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-3: -Implied authority is created in a situation where the authority to act on behalf of someone else is implied by the actions of a person. For example, there may be implied authority when an employee wears a uniform or nametag. It’s implied that they can act on behalf of their employer.