Authority of Agents

1) Where an agent’s authority has been agreed with the principal, verbally or in writing then their authority is said to be actual express authority.

2) In the absence of express authority the agent’s power to bind may be implied in the following ways:
(a) Actual implied authority – as implied by the position held. For example, the Managing Director and company secretary are assumed to have the power to bind the company in all commercial and administrative contracts respectively.
(b) Apparent authority – created either through the rules of estoppel, or where a principal has previously informed a third party that the agent has the power to bind.