An agent that has been given actual authority has the legal capacity to bind the principal to contractual relations with outsiders.

Question

Quizplus · Accepted Answer

Actual authority is the authority given explicitly by the principal to the agent, which allows the agent to create legal relations with third parties on behalf of the principal. Therefore, an agent with actual authority has the legal capacity to bind the principal to contractual relations with outsiders.

An Agent That Has Been Given Actual Authority Has the Legal