Apparent Authority in Commercial Law

Apparent authority

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
APPARENT AND ACTUAL AUTHORITY..................................................................................2
Apparent authority affect the position of third parties.....................................................................4
Response of courts in this issue.......................................................................................................5
CONCLUSION ...............................................................................................................................5

INTRODUCTION
It is a part of commercial law which deals into areas such as quasi-contractual,
contractual & fiduciary relation which revolves an individual known as agent. This person is
legally authorised to act in behalf of principal, for creating contractual agreement with a third
party. It carries a contractual relationship through contracts where three people are minimum
involved first is agent, second is principal and third is last party with which contract is
commenced. This relation is expressed through implied or expressed form of agreement. This
creates a deal or partnership between two people. It gives employment to another person where,
agent is required to perform ample amount of tasks, which are directed through principals
commands. In case of any breech or miss-conduct of code, they have to arrange the notations
where several procedures have to be performed by agent but if any repercussions are faced they
are done by principal only(Andersen, 2018).This means that agent is only representing them in
this contract but actual deal is between principal and third party. This law helps a lot in modern
business environment which includes, commencing contracts and making deals. This relation is
also done over good faith from both sides also known as fiduciary relationship which exits
between principal and agent, with good interest for principal. A duty of full loyalty is required by
agent to perform clearly and create good business working conduct while performing the job.
The basic concept of agent is related to an individual needs to create many types of influential
aspect which are connecting these relationships as per the divergent rules and regulations in
department. The doctrine of estoppel is the most used and satisfactory remedy which helps in
providing certain guidance and force of working in organisation. In particular there are three
main types of estoppel by deed and equitable shall be estoppel and final one is estoppel by
conduct. Agency is very important to have for crating many concepts related to several aspects
such as making defined introduction for relation which is shared between both. Agency is a
crucial aspect of this category and should be discussed in these aspects (Ghanavati and Hulstijn,
2015).
MAIN BODY
There are basically three types of authorities which are stated to be as per they law and
authority commission. authority is giving permission to another entity for performing in their
behalf. As per requirement in market their were many things required by government and they
1