Actual authority Law of agency

actual authority can of 2 kinds. either principal may have expressly conferred authority on agent, or authority may implied. authority arises consensual agreement, , whether exists question of fact. agent, general rule, entitled indemnity principal if or has acted within scope of actual authority, , may in breach of contract, , liable third party breach of implied warranty of authority. in tort, claimant may not recover principal unless agent acting within scope of employment.

express actual authority

express actual authority means agent has been expressly told or may act on behalf of principal.

implied actual authority

implied actual authority, called usual authority , authority agent has virtue of being reasonably necessary carry out express authority. such, can inferred virtue of position held agent. example, partners have authority bind other partners in firm, liability being joint , several, , in corporation, executives , senior employees decision-making authority virtue of position have authority bind corporation. other forms of implied actual authority include customary authority. customs of trade imply agent have powers. wool buying industries customary traders purchase in own names.

also incidental authority, agent supposed have authority complete other task necessary , incidental completing express actual authority. must no more necessary