A Power Given as Security Creates a Relationship of Agency

question 57

True/False

A power given as security creates a relationship of agency and actual authority.

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Definitions:

Express Authority

The authority of an agent that arises when the principal explicitly instructs the agent to do something. Also called actual authority.

Equitable Parity Rule

A legal principle ensuring fair treatment of all parties by balancing interests in a judicial or contractual scenario.

Express Authority

Explicit permission granted to an individual or entity to act on behalf of another, typically in a legal or business context.

Disclosed Principal

A principal whose identity is known to a third party. The third party is aware that the agent is making an agreement on behalf of the principal.