Problem
The Authority of the Agent
A principal is bound by contracts that an agent enters into with authority. The principal / agency relationship creates different types of contractual authority.
i. Explain the doctrine of express authority and discuss the type of authority an agent would have to make a contract under the doctrine of express authority. Explain whether the principal would be bound on the contract made by the agent, whether the agent would be bound on the contract, and whether both could be bound on the contract. Additionally, create a hypothetical scenario illustrating situation in which there is a principal and an agent, and the agent is asking with express authority.
ii. Explain the concept of implied authority and discuss the type of authority an agent would have to make a contract under the doctrine of implied authority. Explain whether the principal would be bound on the contract made by the agent, whether the agent would be bound on the contract, and whether both could be bound on the contract. Additionally, create a hypothetical scenario illustrating situation in which there is a principal and an agent, and the agent is acting with implied authority.
iii. Explain the concept of apparent authority and discuss the type of authority an agent would have to make a contract under the doctrine of apparent authority. Explain whether the principal would be bound on the contract made by the agent, whether the agent would be bound on the contract, and whether both could be bound on the contract. Additionally, create a hypothetical scenario illustrating situation in which there is a principal and an agent, and the agent is acting with apparent authority.