Asked by Fatihah Masri on Jul 14, 2024
Verified
Which of the following determines an agent's actual authority?
A) The agent's reasonable understanding of the principals' manifestations and objectives.
B) The actions the agent must take that are necessary and incidental to achieving the principal's objectives.
C) The authority implied by the conduct of the principal
D) The authority third parties believe the agent has based on the agent's conduct.
Actual Authority
The express and implied powers given by a principal to an agent for carrying out specific transactions.
Principal
The primary party involved in a transaction or contract, or the amount of money originally invested or loaned, before interest.
Agent
An individual or entity authorized to act on behalf of another (the principal) in legal or business matters.
- Acquire knowledge on the elementary concepts of actual authority and its capacity to authorize agents to involve principals in contracts.
- Become acquainted with the creation and utilization of express authority in connections involving agents.
Verified Answer
KM
kaash moneyJul 18, 2024
Final Answer :
A
Explanation :
The agent's reasonable understanding of the principal's manifestations and objectives determines the agent's actual authority.
Learning Objectives
- Acquire knowledge on the elementary concepts of actual authority and its capacity to authorize agents to involve principals in contracts.
- Become acquainted with the creation and utilization of express authority in connections involving agents.