Actual authority of an employee may NOT arise as a result of which of the following?

Question

Quizplus · Accepted Answer

Actual authority arises when an employee is given the power to act on behalf of the corporation in certain matters. This power can be granted through various means like a contract, provision in a resolution, or appointment to a position with specific authority. Oral delegation of authority by an authorized person can also give rise to actual authority. However, an employee telling third parties that they have authority when they don't, does not create actual authority. It is a misrepresentation of authority and can lead to legal consequences for the employee and the corporation.

Actual Authority of an Employee May NOT Arise as a Result