Name the two basic types of authority with regard to agents and explain the difference between them.

The two basic types of authority are actual and apparent. Actual authority exists when the principal gives actual consent to the agent. It may be either express or implied. Apparent authority is based upon acts or conduct of the principal which leads a third person to believe that the agent has actual authority, upon which belief the third person justifiably relies. In either case, such authority is binding and confers upon the agent the power and right to create or affect the principal's legal relations with third parties.