Agent's Authority

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Agent's Authority

The ability of an agent to act on behalf of a client in a way that binds the client. There are four types of agent's authority. Actual express authority is authority the client states in a contract given to an agent. Apparent authority is given verbally by the client. Implied authority is considered by the agent to be necessary to perform duties given under actual express or apparent authority. Finally, inherent authority is that which occurs when the agent exceeds his/her actual express authority only slightly and performs similar actions.
References in periodicals archive ?
There are, however, various national norms that might be applicable depending on the service provided by the agent and his role in the transaction such as the law on conclusion of contracts, agent authority and invalidity (1), the penal code (2), and the lawyers' code of conduct.
Because of the possibility for abuse and also because of the potential tax consequences under both [section] 2041 and [section] 2514, it would be prudent to expressly limit agent authority with these type of powers.
A contract to procure insurance may arise when the agent has definite directions from the insured to consummate a final contract; when the scope, subject matter, duration, and other elements can be found by implication; and when the insured gives the agent authority to ascertain some of the essential facts.
For example, you can give an agent authority to contract, to buy or sell property, to sign checks, to make deposits or withdrawals, to settle claims, or to file lawsuits.
PMACS[R] controls agent authority and compensation payments with unlimited hierarchy levels.