BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Direct communication by the principal to the agent whether oral or written is:
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an apparent authority
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an express authority
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an implied authority
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none of these
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Explanation:
Detailed explanation-1: -In agency law, express authority is an agent’s power to act on behalf of a principal, expressly granted by the principal. It can be given in an agency agreement or through clear and express oral instructions.
Detailed explanation-2: -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.
Detailed explanation-3: -Express agency is an actual agency created by the written or spoken words of the principal authorizing the agent to act on behalf of the principal.
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