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Victor negligently led Gus to believe that Brenda had the authority to act on Victor's behalf. If Brenda had no authority but Gus reasonably and in good faith relied on Brenda's apparent authority:
A) Victor can be liable to Gus for Gus's loss suffered because of his reliance.
B) Victor cannot be held liable to Gus because Brenda had no actual authority.
C) only Brenda can be held liable for any loss Gus suffered because of his reliance.
D) Gus must bear any loss because he did not determine the extent or existence of Brenda'a authority.
Negligently
Acting with a lack of care or concern for the consequences of one's actions, usually resulting in harm or damage to others.
Apparent Authority
A legal concept where a person appears to have the authority to act on behalf of another (such as an employer) and third parties reasonably believe in that authority.
Actual Authority
The express and implied powers given by a principal to an agent to enter into contracts or take action on the principal's behalf.
- Familiarize oneself with the idea of authority in agency connections, covering apparent, express, and implied authority.
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Learning Objectives
- Familiarize oneself with the idea of authority in agency connections, covering apparent, express, and implied authority.
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