BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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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: -Example 1: Geoff has a real estate license. He asks his friend Mark to help him find a home. If Mark continues to work with Geoff, they may enter an implied agency because he is representing Geoff to find the desired home successfully. Since there is no written agreement, the situation becomes implied.
Detailed explanation-3: -Express authority is the authority which the principal has expressly given to the agent whether orally or in writing. Implied authority (sometimes described as usual authority) is the authority of an agent to do acts which are reasonably incidental to and necessary for the effective performance of his duties.
Detailed explanation-4: -An agency contract is a legal relationship, where one person appoints another to transact on his behalf. The contract person who appoints another person to look after his transactions is called the original person. Whereas the person who sees any transaction of the original person is the agent.