Scope of Agent's Authority

What is the primary role of an agent in an agency relationship?

• To replace the principal

• To supervise the principal

• To act on behalf of the principal

• To act independently of the principal

What is actual authority?

• Authority perceived by third parties

• Authority assumed by the agent

• Authority given by the principal, either expressed or implied

• Authority that is always written

How can implied authority arise?

• Through the agent's personal decisions

• Through explicit written instructions

• From the agent's past experiences

• From the characteristics of the agency-principal relationship

What is the relationship between expressed and implied authority?

• Expressed authority is more important than implied authority

• They are completely unrelated

• They are both forms of actual authority

• Implied authority always overrides expressed authority

What does the fairness doctrine of estoppel imply?

• The principal is never responsible for the agent's actions

• The agent is always responsible for their own actions

• The principal can be held liable if third parties reasonably believe the agent has authority

• The agent can deny their authority at any time

What is apparent authority?

• Authority that is never questioned

• Authority that is always documented

• Authority that is only verbal

• Authority based on the agent's representations and the principal's actions or inactions

How can a principal limit an agent's apparent authority?

• By providing clear written instructions

• By allowing the agent to act freely

• By taking no action

• By making third parties aware of the agent's limited authority