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Chapter 5

Authority of agents

The authority of an agent is a central issue in the concept of agency. It
determines the powers that the agent has on behalf of the principal and
the acts for which the principal is liable. If the agent exceeds his
powers the principal may still be liable to the third party, but he may
have rights against the agent for breach of contract.

Authority can be given in various ways:

 Actual express

 Actual implied

 Apparent or Ostensible

Actual express authority

Express authority is stated expressly, specifically and explicitly by the
principal to the agent.

Whether express authority existed or not can be determined by a
number of factors. If the appointment was made in writing then look at
the document and if oral then look for other evidence.

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