If a third party is led to reasonably believe that an agent is acting within the scope of his/her authority, even though the agent is exceeding his/her authority, the principal may still be bound by the agent's actions. In this case, the agent has bound the principal by

A) implied authority.

B) apparent authority.

C) incidental authority.

D) express authority.

Question

Julina

Social Studies

21 June, 22:26

If a third party is led to reasonably believe that an agent is acting within the scope of his/her authority, even though the agent is exceeding his/her authority, the principal may still be bound by the agent's actions. In this case, the agent has bound the principal by

A) implied authority.

B) apparent authority.

C) incidental authority.

D) express authority.

+2

Answers (1)

Know the Answer?

Alisa Richmond · Answer 1

Answer: B) apparent authority

Explanation:

Apparent authority is defined as the event in which agent is designated with the authority of acting on behalf organizational or party is recognized and understood by the third party. In this case official permission of power is not required by apparent authority.

Other option are incorrect because implied authority is carried out by agent as necessary implication. Incidental authority is used for pursuing apparent authority or actual authority. Express authority provided to agent in written or oral form. Thus, the correct option is option (B).