Which of the following is true with respect to the agency relationship?

Question

Quizplus · Accepted Answer

An agent's apparent authority is the authority that the principal has implied to a third party that the agent possesses based on the agent's position in the employer's organization, actions, or statements. Therefore, option E is the correct statement. Option A is incorrect because an agent acting gratuitously can still have implied authority to bind the principal. Option B is incorrect because an agent can still bind the principal if they act within their actual authority, even with specific limitations. Option C is incorrect because actual authority is the authority that the principal has expressly given to the agent. Option D is incorrect because an agent may also have implied or apparent authority, which may enable them to bind the principal.

Which of the Following Is True with Respect to the Agency