Types of Authority

Question 1

Express Actual Authority

Answer 1

Express authority means that the agent expressly has the authority from the principal to act.

Question 2

Implied Actual Authority

Answer 2

Implied authority means that the nature of the agent’s position implies authority to act in a particular matter - either from custom and usage, by acquiescence (including failure to inquire), or because of emergency or necessity.

Question 3

Apparent Authority

Answer 3

Apparent authority exists where the principal communicates by some statement or act to a third party the apparent authority of the agent to act on behalf of the principal with respect to that third party.

Question 4

Ratification of Agent Actions

Answer 4

For ratification, the principal agrees to be bound by unauthorized acts of the agent.

Question 5

Types of Authority

Answer 5

(1) Actual Authority, express, and implied

(2) Apparent Authority