BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Scope of Authority means within the duties and responsibilities of the individual, including any areas which the individual believes to be within his or her duties and responsibilities provided there is a reasonable basis for such belief.

Detailed explanation-2: -For example, suppose a realty company hires a real estate agent. It is implied that the real estate agent has the authority to assist third parties to purchase and sell homes because that is the custom for real estate agents.

Detailed explanation-3: -The law presumes that the scope of an agent’s authority includes all necessary means of effectuating its exercise. The general rule is that an agency relationship is presumed to continue in existence until it is revoked, and that it may be revoked by either party at will, so long as revocation is in good faith.

Detailed explanation-4: -The principal-agent relationship is an arrangement in which one entity legally appoints another to act on its behalf. 1 In a principal-agent relationship, the agent acts on behalf of the principal and should not have a conflict of interest in carrying out the act.