Agent's authority may be expressed, implied, and what other form?

Agent's authority may be expressed, implied, and what other form?

• A. Expressed, implied, independent.
• B. Expressed, implied, apparent.
• C. Expressed only.
• D. Implied only.

Answer: (B)

Authority given to an agent can be expressed, implied, or apparent. Expressed authority is the explicit permission given in words or written terms. Implied authority covers powers that are necessary to carry out the express authority or arise from the agent’s role and duties. Apparent authority arises from the principal’s conduct or representations that lead a third party to reasonably believe the agent has authority to act for the principal, even if the agent has no actual authority. The question asks for the other form besides expressed and implied, which is apparent authority. For example, if a company consistently presents its local agent as able to sign contracts, a third party may reasonably assume the agent has authority to bind the company, even if no written agreement grants that power.

Authority given to an agent can be expressed, implied, or apparent. Expressed authority is the explicit permission given in words or written terms. Implied authority covers powers that are necessary to carry out the express authority or arise from the agent’s role and duties. Apparent authority arises from the principal’s conduct or representations that lead a third party to reasonably believe the agent has authority to act for the principal, even if the agent has no actual authority. The question asks for the other form besides expressed and implied, which is apparent authority. For example, if a company consistently presents its local agent as able to sign contracts, a third party may reasonably assume the agent has authority to bind the company, even if no written agreement grants that power.