[Tux]

Please provide feedback on a discrepancy between Becker and Wiley information regarding agency….

R8-pg 20 – Disclosed Principal is liable (on contracts signed by an agent) if agent had actual or apparent authority

Undisclosed principal only liable to 3rd party if agent has actual authority;

Agent cannot have apparent authority unless principal is disclosed

Wiley says – “A principal, whether disclosed, undisclosed, or partially disclosed, will be liable for the contracts of his agent if these agreements are within the scope of the agent’s express, implied, or apparent authority.”

But, Becker statement above stated that an undisclosed principal cannot have apparent authority – I suppose they cannot have implied authority either.

However, Wiley does not make this distinction.

Can anyone clarify?

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[CPA soon]

The Becker definition covers it well, the Wiley one is showing a different angle of info. Implied is between the agent and principal while apparent is between the agent and other party. Apparent and undisclosed don't make sense together but implied is possible.

FAR - 71, 68, 74, (8/31/14) 78 ✔
REG - 67, 71, 71, (10/18/14) 78 ✔
BEC - (11/29/14) 86 ✔
AUD - 73, (4/4/15) 86 ✔

I can't believe this is over! 2 years and 3 months..

[Author]

Replies