BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Apparent authority is a type of authority that occurs when an individual is believed to have authority when it may not have been expressed or implied. It occurs when a principal’s action requires a third party’s evaluation to which they would understand why the agent would have the authority to act.

Detailed explanation-2: -Primary tabs. 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-3: -A common example of an issue involving apparent authority is where an officer of a company is given a title, status and facilities that give rise to a misrepresentation about the scope of that officer’s actual authority, without safeguards being in place to prevent such a misrepresentation.

Detailed explanation-4: -Apparent Authority vs Actual Authority While apparent authority is an illusion and is not legally binding, actual authority is the right to officially act on the principal’s behalf. Two types of actual authority are expressed and implied.

Detailed explanation-5: -The principal is the party who gives legal authority to another to act on his or her behalf, and the agent is the party who is legally authorized to act on behalf of the principal when dealing with a third party.