Actual Authority
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Actual authority is a type of authority in agency law that refers to the authority that a principal has actually given to an agent to act on their behalf. This authority can be express or implied.
Express actual authority is the authority that is explicitly given to the agent through a contract or agreement between the principal and the agent. This can take the form of a written contract or an oral agreement. The terms of the agreement will specify the scope of the agent's authority and the types of actions that the agent is authorised to take on behalf of the principal.
Implied actual authority, on the other hand, arises from the conduct of the parties or the circumstances of the case. It is not explicitly stated in a contract or agreement, but is inferred from the conduct of the parties. For example, if a principal hires an agent to purchase supplies for their business, the agent may have implied actual authority to negotiate the price of the supplies.
The scope of actual authority can be limited by the terms of the agreement between the principal and the agent. For example, if the agreement specifies that the agent is only authorised to act within a certain geographic region or to perform certain types of tasks, the agent's actual authority will be limited accordingly.
It is important to note that actual authority only applies to actions that are taken within the scope of the agent's authority. If an agent takes actions that are outside of their actual authority, the principal may not be held liable for any harm that results from those actions.
Actual authority is an important concept in agency law, as it defines the scope of the agent's authority and helps to ensure that the principal is protected from liability for actions that the agent takes on their behalf.
Express actual authority is the authority that is explicitly given to the agent through a contract or agreement between the principal and the agent. This can take the form of a written contract or an oral agreement. The terms of the agreement will specify the scope of the agent's authority and the types of actions that the agent is authorised to take on behalf of the principal.
Implied actual authority, on the other hand, arises from the conduct of the parties or the circumstances of the case. It is not explicitly stated in a contract or agreement, but is inferred from the conduct of the parties. For example, if a principal hires an agent to purchase supplies for their business, the agent may have implied actual authority to negotiate the price of the supplies.
The scope of actual authority can be limited by the terms of the agreement between the principal and the agent. For example, if the agreement specifies that the agent is only authorised to act within a certain geographic region or to perform certain types of tasks, the agent's actual authority will be limited accordingly.
It is important to note that actual authority only applies to actions that are taken within the scope of the agent's authority. If an agent takes actions that are outside of their actual authority, the principal may not be held liable for any harm that results from those actions.
Actual authority is an important concept in agency law, as it defines the scope of the agent's authority and helps to ensure that the principal is protected from liability for actions that the agent takes on their behalf.
