ACCA LW ^Eng Syllabus D. The Formation And Constitution Of Business Organisations - Define The Authority Of The Agent - Notes ^{3 / 4}

There are different types of authority:

1. Actual Authority

   This can be

   • Actual Express

     Here an agent's authority has been agreed with the Principal verbally or in writing

   • Actual Implied

     Here an agent's authority has been implied by the position held

     Authority of this type can be:

     1. Customary in the trade circumstances OR

     2. Usual in the circumstances

2. Apparent / Ostensible Authority

   This is created by:

   The agent working as if he was an agent previously even though he wasn't actually appointed as an agent (the principal just accepts the arrangement)

   Or the principal stops the agent's authority but didn't tell the third party - here the agent can still bind the principal with that 3rd party