Dean is not Paul's agent, but Paul tells Charlie that Dean has always been a good friend and can "handle any of my business affairs." If Dean were to later enter into a contract with Charlie on Paul's behalf, Dean would be acting under an:

a. implied authority.

b. express authority.

c. obvious authority.

d. apparent authority.

Question

Axel Sims

Business

4 October, 08:25

Dean is not Paul's agent, but Paul tells Charlie that Dean has always been a good friend and can "handle any of my business affairs." If Dean were to later enter into a contract with Charlie on Paul's behalf, Dean would be acting under an:

a. implied authority.

b. express authority.

c. obvious authority.

d. apparent authority.

+2

Answers (1)

Know the Answer?

Eliza Jones · Answer 1

The correct answer is d. apparent authority.

Explanation:

An apparent authority is a two-party association that would lead a reasonable person to conclude that one party acts as the agent of the other party. For example, an insurance salesperson could be employed by an insurance agency as an independent contractor, but could actually be considered an apparent agent of the company for legal purposes.