LAW 3102 Study Guide - Midterm Guide: Apparent Authority, No Authority, Software Industry
Document Summary
The principal and the third party are bound to those contracts the principal actually authorizes plus those the principal has apparently authorized. The principal is a disclosed principal if, when an agent and a third party interact, the third party has notice that the agent is acting for a principal and also has notice of the principal"s identity. An auctioneer who sells on behalf of a seller who is not identified: the seller is an unidentified principal (or a partially disclosed principal) since it is understood that the auctioneer acts as an agent. The principal is an undisclosed principal if, when an agent and a third party interact, the third party has no notice that the agent is acting for a principal. Actual authority depends upon consent that the principal manifests to the agent; it may be either express or implied.
