Actual Authority

Question 1

Actual Express Authority

Answer 1

Look to communication between agent and principal

Principal creates actual express authority by using words, written or spoken, to convey authority to agent

Question 2

Actual Express Authority: Requisite Intent

Answer 2

Subjective Intent: A must believe that is doing what P wants

Objective Intent: A’s belief must be objectively reasonable

Question 3

Actual Express Authority: Termination by Death

Answer 3

P’s Death: A’s actual express authority terminates when agent has HEARD of P’s death

A’s Death: Actual express authority terminates IMMEDIATELY upon A’s death

Question 4

Actual Implied Authority

Answer 4

Look to communication between agent and principal

Principal creates actual implied authority by using words, written or spoken, or other conduct to convey authority to agent to take WHATEVER STEPS NECESSARY to achieve principal’s objectives

Agent has actual implied authority to act within accepted business customs or general trade usage

Question 5

Delegation of Express/Implied Authority

Answer 5

Generally, A prohibited from delegating either express or implied authority to third party without P’s express authorization