Questions: Which of these is NOT a type of agent authority?
A. Principal
B. Implied
C. Apparent
D. Express
Transcript text: Which of these is NOT a type of agent authority?
A. Principal
B. Implied
C. Apparent
D. Express
Solution
Answer
The answer is A. Principal
Explanation
Option 1: Principal
Principal is not a type of agent authority. In the context of agency law, the principal is the person or entity who authorizes an agent to act on their behalf. The principal is the source of the agent's authority, not a type of authority itself.
Option 2: Implied
Implied authority refers to the power of an agent to perform acts that are reasonably necessary to accomplish the purpose of the agency. This type of authority is not explicitly stated but is assumed to be granted as part of the agent's role.
Option 3: Apparent
Apparent authority, also known as ostensible authority, occurs when a third party reasonably believes that an agent has the authority to act on behalf of the principal, even if the agent does not have actual authority. This belief is often based on the principal's representations or conduct.
Option 4: Express
Express authority is the power given to an agent explicitly, either orally or in writing, by the principal. This type of authority is clearly defined and communicated to the agent.