6 On October 1, 2009, Ralph was retained by Irving to \"manage\" Irving\'s high

Question

6 On October 1, 2009, Ralph was retained by Irving to "manage" Irving's high rise apartment building at 5100 N. Marine Drive in Chicago. On December 1, 2009 Ralph decided a new swimming pool was needed and contracted with Central Pool Construction to build an Olympic size pool on the roof. On June 2, 2009 after construction was completed, Irving received an invoice for $2,000,000.00. Is Irving liable? Why? Why not? Explain all issues fully, focusing on actual express authority, actual implied authority, and apparent authority.

Explanation / Answer

Expressed authority means that a principal has granted authority to the agent either orally or in writing.

Implied authority means that principal intends that an agent will carry out his or her express authority as necessary.

Apparent authority exists where a third person believes that the agent is authorized to act, even if the principal and the agent had never discussed such a relationship.

Ralph has been given an express authority by Irving to maintain his apartment. It is implied by Ralph to do anything in order to maintain Irving’s apartment. So he contracted with Construction Company to build a swimming pool, who thought this to be an apparent authority of Ralph. An agent who acts within the scope of authority conferred by his or her principal binds the principal in the obligations she creates against third parties. So Ralph is not liable for the cost of construction.

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.