Explain How a Third Party Can Determine the Scope of an Agent's

question 11

Essay

Explain how a third party can determine the scope of an agent's authority to bind the principal it represents? In your answer, specifically identify barriers make it difficult for a third party to discover an agent's authority.

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Definitions:

Exculpatory Clause

An Exculpatory Clause is a contract provision that relieves one party from liability for harm or damage that could occur to the other party under the agreement.

Public Policy

Principles and standards considered to be in the public interest, which guide lawmakers and regulators.

Negligence Liability

Legal responsibility that arises from failing to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

Regulatory

Pertaining to rules or directives made and maintained by an authority to regulate activities, often within specific industries.