What are the differences between actual and apparent authority?

Actual authority and apparent authority are both important considerations when dealing with business transactions in Massachusetts. Actual authority is when an individual has been given express permission to commit a specific act on behalf of the company, such as signing a contract. Apparent authority is when the individual has not been given express permission, but has instead been given the appearance of authority to do something. Apparent authority is usually based on an individual’s actions or statements, which show that the individual has been given the authority. One key difference between actual and apparent authority is that actual authority is binding whereas apparent authority is not. This means that if an individual has been given express permission to commit a specific act, that act is legally binding and enforceable in a court of law. However, if it appears that the individual has been given the authority, but they have not actually been given permission, then any actions taken by that individual are not legally binding or enforceable. Another difference between actual and apparent authority is that actual authority is created by a contract or agreement, while apparent authority is created by an individual’s actions or statements. This means that, to give an individual actual authority, there must be an agreement between the individual and the company that explicitly gives the individual the permission to act. On the other hand, if it appears to the company that the individual has the authority to act, then this is known as apparent authority. In conclusion, actual and apparent authority are two different legal concepts that are important to consider when making business transactions in Massachusetts. Actual authority is created by a contract or agreement and is legally binding, while apparent authority is created by an individual’s actions or statements and is not legally binding.

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What are the differences between actual and apparent authority?

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