Question

Economics

What is meant by actual and apparent (or ostensible) authority?

What are liabilities of agents who act without authority?

What remedies exist for a principal and/or third party where an agent has acted without authority?

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Answer 1

Answer:

Actual Authority

An agent will have apparent or ostensible (not actual) authority if the principal has indicated to a third party that an agent has the authority to act on their behalf, despite the fact that the agent doesn't have the actual authority to do so.

Answer 2

actual authority reports to specify power ,expresivily conferred by a principal (often an insurance company) to an agent to act on the principle 'behave