The principal hires an agent to manage his restaurant.As a result,the agent hires two people to serve as waitstaff.The hiring of the waitstaff is an example of what type of authority?

Question

Quizplus · Accepted Answer

Implied authority refers to the authority that is not expressly granted in a contract or agreement but is implied by the actions or circumstances of the parties involved. In this case, the principal hired the agent to manage his restaurant, and hiring waitstaff is a reasonably necessary and expected task of a restaurant manager. Therefore, the agent has implied authority to hire waitstaff on behalf of the principal.

The Principal Hires an Agent to Manage His Restaurant