[Anonymous]

In regards to the authority of an agent of a third party, isn’t implied authority and apparent authority the same thing?

[pacestud32]

I think it's basically the same thing if the principal isn't known.

[pacestud32]

I think it's basically the same thing if the principal isn't known.

[stoleway]

when the principal is not known, he or she is regarded as an undisclosed principal in an agency contract.

IMPLIED AUTHORITY is authority an agent has by virtue of being reasonably necessary to carry out his express authority.

For example, partners have authority to bind the other partners in the firm, their liability being joint and several, and in a corporation, all executives and senior employees with decision-making authority by virtue of their position have authority to bind the corporation.

APPARENT AUTHORITY exists where the principal's words or conduct would lead a reasonable person in the third party's position to believe that the agent was authorized to act, even if the principal and the purported agent had never discussed such a relationship. For example when you appoint or employ people to executive and senior management positions, those who know of the appointment are entitled to believe that they have APPARENT AUTHORITY to do the things ordinarily entrusted to one occupying such a position.

The only way to avoid any liability is to expressly inform or caution third parties.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

when the principal is not known, he or she is regarded as an undisclosed principal in an agency contract.

IMPLIED AUTHORITY is authority an agent has by virtue of being reasonably necessary to carry out his express authority.

For example, partners have authority to bind the other partners in the firm, their liability being joint and several, and in a corporation, all executives and senior employees with decision-making authority by virtue of their position have authority to bind the corporation.

APPARENT AUTHORITY exists where the principal's words or conduct would lead a reasonable person in the third party's position to believe that the agent was authorized to act, even if the principal and the purported agent had never discussed such a relationship. For example when you appoint or employ people to executive and senior management positions, those who know of the appointment are entitled to believe that they have APPARENT AUTHORITY to do the things ordinarily entrusted to one occupying such a position.

The only way to avoid any liability is to expressly inform or caution third parties.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Author]

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