The two types of actual authority are Express and apparent. Implied and apparent
ID: 367714 • Letter: T
Question
The two types of actual authority are
Express and apparent.
Implied and apparent.
Express and implied.
Express and explicit.
Implied and direct.
Susan is hired to manage a business that manufactures basketballs. This means that she has the authority to make contracts that are reasonably necessary for conducting the business, such as purchasing supplies. After not doing so for two months, Susan's boss directly told her to purchase these supplies. The boss's statement is called:
Implied authority.
Direct authority.
Apparent authority.
Indirect authority.
Express authority.
Explanation / Answer
Let us get to the two questions:
Q1. The two types of actual authority are Expressed and Implied (Option C).
Actual authority is where a person is actually delegated authority from the principal. You have two types here - One is expressed where the principal actually gives in writing (or expresses) the authority to the delegate. The other is implied, which is also called the "usual" mode where it is assumed that the person in question has the required authority.
Q2. Susan is hired to manage a business that manufactures basketballs. This means that she has the authority to make contracts that are reasonably necessary for conducting the business, such as purchasing supplies. After not doing so for two months, Susan's boss directly told her to purchase these supplies. The boss's statement is called Implied Authority (Option A)
Implied authority is where it is assumed that the person in question has the necessary authority to carry out the tasks, as explained in Q1. Here, the boss assumes Susan already has the required authority to purchase the supplies, and hence directly asks her. This is clearly an example of implied authority.
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