BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Apparent authority is the power of an agent to act on behalf of a principal, even though not expressly or impliedly granted. This power arises only if a third party reasonably infers, from the principal’s conduct, that the principal granted such power to the agent.

Detailed explanation-2: -An agent’s authority to act on behalf of a principal must be actual and apparent. In general, for every duty of the principal, the agent has a corresponding right. A principal is exposed to tort liability whenever a third person sustains a loss due to an agent’s misrepresentation.

Detailed explanation-3: -Apparent authority usually comes into existence through a principal’s pattern of conduct over time. A court can apply the doctrine of agency by estoppel when a principal has given a third party reason to believe that an agent has authority to act.

Detailed explanation-4: -Express authority is the explicit authority granted to the agent by the principal as written in the agency contract.