Authority: Actual and Apparent

This lesson discusses the power that an agent has to affect the legal rights of the principal. In general, an agent may affect the principal's legal rights only to the extent that the agent possesses the authority to do so. This lesson provides an introduction to the two basic types of authority -- actual authority and apparent authority.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Identify the two basic types of authority -- actual authority and apparent authority.
2. Explain how actual and apparent authority are created.
3. Analyze the differences between actual and apparent authority.
4. Discuss the concept of inherent agency power.