Actual Authority Flashcards
What is actual authority?
An agent has actual authority to act if the agent reasonably believes, based on the principal’s manifestations to the agent, that the principal wishes the agent to act in that manner on the principal’s behalf.
What are the two types of actual authority?
Express and Implied
What is Express actual authority?
Actual express authority exists when the principal directs the agent to engage in the precise task in question.
What is actual implied authority?
Actual implied authority exists when the agent believes, based on a reasonable interpretation of the principals words or conduct, that the principal wishes him to act on the principal’s behalf.
What is incidental actual authority?
The agent’s authority to conduct a transaction includes the authority to engage in actions that are incidental to it, usually accompany it, or are reasonably necessary to accomplish it.
