The extent of the agent's authority in a principal-agent relationship is governed by any express agreement between the parties and implied from the circumstances of the agency.

Question

Quizplus · Accepted Answer

The statement is true. The extent of the agent's authority can be determined by the express agreement between the principal and agent, as well as from the circumstances surrounding the agency. This may include the agent's past conduct, the nature of the business, and the customs and practices of the industry.

The Extent of the Agent's Authority in a Principal-Agent Relationship