Actual Authority

Question 1

Actual Express Authority

Answer 1

The principal creates actual express authority by using words, written or spoken, to convey authority to the agent

Question 2

Requisite Intent for Actual Express Authority

Answer 2

Subjective Intent: The agent must believe that he is doing what the principal wants him to do.

Objective Intent: The belief must be objectively reasonable

Question 3

When does authority terminate when the principal dies?

Answer 3

Upon the death of the principal, actual express authority terminates when the agent has actual knowledge of the principal’s death. This means that the principal’s representatives can still be held liable for contracts the agent entered into on behalf of the principal prior to learning that the principal was dead.

Question 4

When does authority terminate when the agent dies?

Answer 4

Actual express authority terminates immediately upon the death of the agent

Question 5

Actual Implied Authority

Answer 5

A principal creates actual implied authority by using words, written or spoken, or other conduct to convey authority to the agent to take whatever steps are necessary (custom) to achieve the principal’s objectives.

Question 6

The agent has actual implied authority (absent express instructions to the contrary) to act within the accepted ____________ or general ___________

Answer 6

business custom; trade