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Inherent, Apparent and Actual Authority

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Define the terms "inherent," "apparent" "actual" and explain how they relate to the authority of an individual and/or entity.

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Define the terms "inherent,?"apparent,? "actual?and explain how they relate to the authority of an individual and/or entity.
There are commercial and legal requirements in action between a principal and an agent to give authority to an individual and/or entity.

1. Actual authority occurs when the agent 'reasonably?believes that she or he has been authorized to act either from the principal's words or conduct, such as in a contract. It can also be implied because what is said or done make it reasonably necessary for the person to assume the powers of an agent. When the principle has given this type of authority in a clear manner, such as contractual, then every action by the individual/ entity that falls within the scope of the authority given in the contract, for example, is binding for the principal. Actual authority is binding even if the agent acts fraudulently for its own benefit, unless the Third Party knows of the agent's personal agenda. In fact, even without a contract, words from the principle suggesting actual authority or any conduct that "reasonably?led the ...

Solution Summary

Relating to authority, this solution examines three concepts: inherent, apparent and actual authority.

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