Authority of Agents and Principals

Free CPA REG (Taxation & Regulation) lesson in Business Law. 14 min read, ~2,071 words.

Actual authority flows principal to agent (express words or implied necessity); apparent authority flows principal to third party (the principal's conduct creates the appearance). Estoppel binds a principal who knew an unauthorized person was acting and stayed silent. Ratification is retroactive consent requiring full knowledge of material facts, capacity at...