3 The Actual Authority of the Agent

Subject(s):

Apparent authority — Usual authority — Breach of warranty of authority

This chapter defines actual authority, which refers to the authority the agent possesses as the principal has expressly conferred that authority upon him or because the law regards the authority as having been conferred upon the agent by necessary implication. It explains how the actual authority of an agent that is customarily contrasted with an agent’s apparent authority. It also reviews the scope of an agent’s actual authority when determining the agent’s liability to the principal and settling the bounds of the agent’s authority in cases where other varieties of authority. The chapter talks about the precise extent of an agent’s actual authority that turn on the true construction of the words of his appointment. It examines the ambit of the agent’s authority that is be ascertained by applying the normal principles of interpretation of contracts.