Actual Authority

Question 1

Which parties must communicate for actual express authority?

Answer 1

PRINCIPAL and AGENT

Question 2

Must actual express authority be written?

Answer 2

NO, any words, spoken or written, are acceptable

Question 3

Requisite intent for actual express authority

Answer 3

Both subjective and objective intent required

Subjective: agent must BELIEVE he is doing what principal WANTS him to do

Objective: belief must be objectively REASONABLE

Question 4

When does actual express authority terminate if principal dies?

Answer 4

When agent has ACTUAL KNOWLEDGE of principal’s death

Question 5

When does actual express authority terminate if agent dies?

Answer 5

IMMEDIATELY on death of agent

Question 6

Which parties must communicate for actual implied authority?

Answer 6

Principal and agent

Question 7

How does principal create implied authority?

Answer 7

Using words, written or spoken, or OTHER CONDUCT to convey authority about whatever steps are NECESSARY to achieve principal’s objectives

Question 8

Under what conditions does agent have actual implied authority

Answer 8

Within BUSINESS CUSTOMS or GENERAL TRADE USAGE

(so long as there are no indications to the contrary)