A principal is bound by contracts that an agent enters into with ...

[tiffannnnyyyyyy]

A principal is bound by contracts that an agent enters into with authority. Discuss the various types of contractual authority an agent may have.

Question 2

The SWIFT System is an electronic network to handle for the exclusive transmission of international banking transactions and regulated by the World Bank.
  Indicate whether the statement is true or false

[vboyd24]

Answer to Question 1

Authority is the legal ability of an agent to bind a principal. The types of authority include: express, implied, and apparent authority. Express Authority is when the principal, by words or conduct reasonably interpreted, actually gives the agent the authority. Implied Authority is the authority to do the things reasonably necessary to carry out the expressly authorized tasks. Apparent Authority arises when the principal does something to make a third party believe that a person has authority to act. Express and implied authority are categories of actual authority. In apparent authority, the principal is liable for the agent's actions even though the agent was not authorized.

Answer to Question 2

FALSE