Law - Assignments

Law - Assignments

Q. 1.

The agreement which has to be made between these two companies, and the contract which has to be signed, are all made by this agency law. It sets the limits, and it also sets the rules and regulation by mutual consent of both parties. Each case is different, so the agency has laws which differ accordingly. Here the agency has introduced the actual and apparent authority. For example, someone is selling his house; he goes to the agency for all the formalities. The one who is buying the house is will have the apparent authority of that house, as he has done the payment. The actual authority will be with the owner, as he still has the original documents. Once the transfer of the documents takes place, at that time, the actual authority and the apparent authority switches. Once the transferring of the documents is complete, then there is only one owner, who bought that house (ABS, 2008).

The actual and apparent authority of the agency is also important to know because if the agency does not have the actual authority, it is not reliable. Any customer who wants to deal with any agency should first know whether the agency has the actual authority. Few agencies works under other large agencies; thus, they do not have the actual authority of making any decisions. When these agencies do not have the actual authority, than they do not have the apparent authority as well, which do not give the right to them of making any decision on their own (ABS, 2008).

The implied authority can also be regarded as second type of actual authority as it allows to perform certain tasks or actions demonstrated by the agents. The main concept of implied authority is to identify what needs to ...