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The extent of an agent’s authority, whether express or implied, depends upon:
- a)The nature of act or business for which he has been appointed
- b)Things which are incidental to the business or are usually done in carrying it out
- c)The usual customs and usages of the trade
- d)All of them
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
The extent of an agent’s authority, whether express or implied, ...
Understanding Agent's Authority
The extent of an agent's authority is crucial in determining the scope of their actions and responsibilities. This authority can be either express (clearly defined) or implied (assumed based on circumstances). The correct answer, 'D', acknowledges that several factors collectively shape an agent's authority.
Factors Influencing Authority
- The Nature of Act or Business:
The specific act or business for which the agent is appointed dictates their authority. For instance, an agent appointed to sell property has the authority to negotiate and finalize sales related to that property.
- Incidental Actions:
Authority also extends to actions that are incidental to the primary business. These are actions that, while not explicitly stated, are necessary for effectively carrying out the main task. For example, an agent selling goods may need to handle payments or arrange for delivery.
- Customs and Usages:
The usual customs and practices of the trade significantly influence authority. In certain industries, there are established norms that dictate what an agent can or cannot do. These customs can fill in gaps where express authority is lacking.
Conclusion
In summary, the authority of an agent is shaped by multiple interrelated factors. Understanding these elements—nature of the act, incidental actions, and trade practices—ensures clarity in the agent's role and helps prevent misunderstandings. Therefore, option 'D' is correct as it encompasses all aspects that define an agent's authority comprehensively.
The extent of an agent's authority is crucial in determining the scope of their actions and responsibilities. This authority can be either express (clearly defined) or implied (assumed based on circumstances). The correct answer, 'D', acknowledges that several factors collectively shape an agent's authority.
Factors Influencing Authority
- The Nature of Act or Business:
The specific act or business for which the agent is appointed dictates their authority. For instance, an agent appointed to sell property has the authority to negotiate and finalize sales related to that property.
- Incidental Actions:
Authority also extends to actions that are incidental to the primary business. These are actions that, while not explicitly stated, are necessary for effectively carrying out the main task. For example, an agent selling goods may need to handle payments or arrange for delivery.
- Customs and Usages:
The usual customs and practices of the trade significantly influence authority. In certain industries, there are established norms that dictate what an agent can or cannot do. These customs can fill in gaps where express authority is lacking.
Conclusion
In summary, the authority of an agent is shaped by multiple interrelated factors. Understanding these elements—nature of the act, incidental actions, and trade practices—ensures clarity in the agent's role and helps prevent misunderstandings. Therefore, option 'D' is correct as it encompasses all aspects that define an agent's authority comprehensively.
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The extent of an agent’s authority, whether express or implied, ...
Extent of an agent's authority
- The nature of act or business for which he has been appointed: The authority of an agent is determined by the specific tasks or business purposes for which they have been appointed.
- Things which are incidental to the business or are usually done in carrying it out: An agent may have implied authority to carry out tasks that are necessary or customary in the course of their business.
- The usual customs and usages of the trade: The customs and practices of a particular trade or industry may also define the scope of an agent's authority.
- All of them: The extent of an agent's authority can be a combination of express and implied powers, as well as industry customs and practices.
By considering these factors, it is possible to determine the full extent of an agent's authority in carrying out their duties.
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The extent of an agent’s authority, whether express or implied, depends upon:a)The nature of act or business for which he has been appointedb)Things which are incidental to the business or are usually done in carrying it outc)The usual customs and usages of the traded)All of themCorrect answer is option 'D'. Can you explain this answer?
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