Question

1. Explain the concept of apparent authority.

2. Briefly describe the doctrine of respondeat superior.

Answer 1

Apparent authority can be understood as the concept where a principal such as a company or a firm gives authority to the agent to act on their behalf in good faith but, in fact, they had not given the actual authority to negotiate on their behalf. It is, therefore, a situation where the defense could be stated where apparent authority was given to the agent, which makes the company or the principles liable for the actions of the agent.

Respondeat superior is a concept which states that the party or principal is liable for the actions of their agent and therefore, have liability and no defense when the cases are brought upon them in the capacity of the courts. This means that the actions of the agent have to be recognized by the principle since it carries a liability for them an also the negotiations by the agents could be used in legally binding capacity.