- 1 Marks
Question
An agent has apparent authority to bind:
A. The third party
B. The principal
C. The whole company
D. The whole wide world
E. Himself
Answer
B. The principal
Explanation:
Apparent authority arises when a third party reasonably believes that an agent has the authority to act on behalf of the principal, even if the agent does not have actual authority. In such cases, the principal is bound by the agent’s actions.
- Level: Level 1
- Topic: Agency Law
- Series: MAY 2014
- Uploader: Theophilus