Asked by Alexander Hernandez on Jun 09, 2024

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Which of the following is true of apparent authority?

A) It arises when an agent falsely claims to be acting under the authority of a principal.
B) It requires express authorization,in words or writing,from the principal.
C) It arises when the principal leads a third party to believe that an agent is authorized.
D) It requires that the agent receive consideration from the principal,i.e. ,the agent is not a gratuitous agent.

Apparent Authority

A doctrine in agency law whereby a principal is liable for the actions of an agent, as the agent appears to third parties to have the authority to act on behalf of the principal.

Express Authorization

Express authorization is a clear and direct granting of permission or power to act, often specified in writing, that delineates the scope and terms under which actions may be taken.

Consideration

The value (such as money, services, or goods) exchanged between parties in a contract, making the agreement legally binding.

  • Understand the concept and implementation of apparent authority in agency relationships.
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BT
Brittany TrotterJun 16, 2024
Final Answer :
C
Explanation :
For actual authority,the principal's consent must be communicated to the agent,while for apparent authority it must be communicated to a third party.