Outline the Ways in Which a Principal Can Be Legally

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Examlex · Accepted Answer

The Answer is The principal will be obligated by the contract when the agent has actual authority or when the agent has apparent authority.An agent's actual authority can be both express and implied.Express authority is the written or oral authority granted by the principal to the agent and is an authority that the agent actually has.Implied authority is also an authority that the agent actually has,but it is present by implication only.An agency relationship can also be created by estoppel,such as when the principal acts such that third parties reasonably conclude that an agency relationship exists.An agency relationship is also created when one party adopts a contract entered into on his behalf by another who at the time acted without authority.

Outline the Ways in Which a Principal Can Be Legally

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