An agent has an interest in the authority when consideration has been given or paid for the right to exercise the authority.

Question

Quizplus · Accepted Answer

When an agent has given or paid for the right to exercise authority, they have a vested interest in that authority. This is true for both actual and apparent authority. Without consideration, the agent may not have a legal right to exercise authority on behalf of the principal.

An Agent Has an Interest in the Authority When Consideration