What are the differences between actual and apparent authority?

Actual authority and apparent authority are two concepts related to business transactions in Texas. Actual authority is the power given to an agent by the principal to make decisions or take actions on their behalf. This type of authority can be either written or verbal, and it is binding to the principal and the agent. Apparent authority, also known as “implied” or “ostensible” authority, is the power of an agent to bind the principal to the contracts and actions they take, which is based on the belief of third parties. This type of authority is not granted by the principal directly, but is implied by the actions of the principal, such as introducing the agent as an employee or agent or giving the agent certain authority. The difference between actual and apparent authority is that actual authority is granted by the principal to the agent, and apparent authority is implied by the actions of the principal but is not explicitly granted. In Texas, both actual and apparent authority may be used to legally bind the principal, but it is important to note that apparent authority may not always be binding or valid in certain circumstances.

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What are the differences between actual and apparent authority?

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