Asked by Rebekah Hilton on Apr 26, 2024
Verified
Apparent authority is not actual authority.
Apparent Authority
A situation where a person appears to have the power to act on behalf of another person or entity, leading third parties to believe in the authority's legitimacy.
Actual Authority
The power that an agent or employee has been deliberately given by a principal or employer to conduct specific acts or transactions.
- Attain an understanding of the principle of agency authority and the differences between actual, apparent, and ratified authority.
Verified Answer
EG
Eddie GarciaMay 01, 2024
Final Answer :
True
Explanation :
Apparent authority refers to a situation where a third party reasonably believes an agent has the authority to act on behalf of a principal, even if the agent does not have the actual authority to do so.
Learning Objectives
- Attain an understanding of the principle of agency authority and the differences between actual, apparent, and ratified authority.