The authority of agents refers to the legal power or capacity granted to agents to act on behalf of a principal, binding the principal by their actions within the scope of the authority. This authority can be actual, implied, or apparent, and is crucial in determining the validity and enforceability of the agent's actions in contractual and legal contexts.

Authority Of Agents

Legal power

Capacity granted to agents

Act on behalf of a principal

Binding the principal

Scope of the authority

Actual authority refers to the power an agent has been explicitly or implicitly granted by a principal to act on their behalf, creating legally binding obligations for the principal. This authority can be expressed directly through written or spoken words or implied through the principal's conduct or the circumstances of the relationship.

Actual Authority

Implied authority refers to the power an agent has to perform acts that are reasonably necessary to accomplish the purpose of an express authority granted by a principal. It is not explicitly stated but is inferred from the actions, duties, and responsibilities assigned to the agent by the principal.

Implied Authority

Apparent authority arises when a principal's conduct leads a third party to reasonably believe that an agent has the authority to act on the principal's behalf, even if the agent lacks actual authority. This legal doctrine protects third parties who rely on the appearance of authority in their dealings with agents, ensuring that principals are bound by the agents' actions within the scope of this perceived authority.

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