Please explain the concept of authority in agency law.
Agents are only allowed certain authorities when entering into a contractual agreement with their clients. This means that the agreement may only allow the agent to do certain things for his clients on his own that the client would then be forced into. If the agent does not have the authority to act on behalf of the client or exceeds the authority that he/she was given by the client, the client will not be bind to the actions done by the agent.
Please include in your discussion each distinct type of authority.
An agent acts with actual authority when the agent reasonably believes that his actions are within the scope of authority given to him/her by the client.
Authority given can even either be expressed or implied:
Expressed authority is any written or oral communication that grants the agent authority to perform an act.
Implied authority refers to incidental acts that the agent performs that are reasonably necessary to accomplish the agents express responsibilities as provided in the agency agreement.
In situations where it is unclear whether or not the agent has actual authority, the agent may have what is termed apparent authority.
Overall, when an agent acts without authority and apparent authority does not apply either, then the client is generally not legally bound by the agent's actions. If however, the client affirms the acts performed by the agent even though he/she did not have the authority to do in the first place, then those acts can be legally binding under the term known as ratification.
http://sports.espn.go.com/ncf/news/story?id=6046507
In this article, Cam Newton decides to hire an agent for the upcoming NFL draft named Bus Cook. Newton decided to skip his senior season and enter the draft as a junior and needed proper representation to handle all the new deals and challenges that will be headed his way.
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