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What does it mean to have actual authority?

Actual authority is the authority that an agent will reasonably believe they have due to information communicated to them by the principal. Actual authority can be either expressly stated or implied.

Express authority: Express authority is when the the principal directly grants binding power to the agent. This can be accomplished in writing or orally. This is typically captured through power of attorney.

Implied authority: Implied authority is the authority that the agent has based on how a reasonable person would interpret that authority.


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