Asked by Mathew Temisan on May 04, 2024
Verified
No apparent authority exists where the third party knows that the agent has no actual authority.
Apparent Authority
The appearance or assumption of authority based on the actions or statements of the principal, leading third parties to believe an agent has authority to act.
Actual Authority
A legal concept where a party is officially granted the power to act on behalf of another, particularly in a business setting.
- Acknowledge the necessary steps to end an agent's implicit authority.
- Distinguish between actual, implied, and express authority of an agent.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
True
Explanation :
Apparent authority exists when a third party reasonably believes an agent has the authority to act on behalf of the principal, based on the principal's representations. If the third party knows the agent lacks actual authority, then no apparent authority can exist because the belief in the agent's authority is not reasonable.
Learning Objectives
- Acknowledge the necessary steps to end an agent's implicit authority.
- Distinguish between actual, implied, and express authority of an agent.