ASSIGNMENT LEARN MORE ABOUT BUSINESS LAW

Running head: BUSINESS LAW
BUSINESS LAW
Name of the Student
Name of the University
Authors Note

BUSINESS LAW
1
Answer
1.
There are several differences exist between actual and apparent authority. Under the
actual authority, a legal relationship exists between a principal and an agent by an agreement in
which they are considered as parties. Such an agreement can be made either expressly or
impliedly. It is called express when a resolution has been passed by the board of directors which
permits a director to appoint architects. It is called implied, when the performance of the parties
or circumstances of the case is determined, for example, when an individual is selected by the
board of directors as managing director.
Whereas, apparent authority is such an authority under which an agent seems to appear in
front of others to have as a consequence of definite interpretations or conduct by the principal
anticipated to be acted upon the third party (1).
2.
Estoppel and ratification are very common terms under Agency law. The meaning of
estoppel is that the principal does not compete with the agency relationship, because it helps to
third parties presume that somebody is his agent and the third party contracts with the agent.
Although it has no presence in reality.
Whereas, the meaning of ratification is that if a person who has no authority to serve as
an agent continuously and the hypothetical principle ultimately accepts that agent, an agency
association has been made retroactively. In both the case, the Principal performs similarly but
from the aspect of confirmation, they are different (1).
3.