What are the differences between actual and apparent authority?

Actual authority is the power given to an agent by a principal, which may either be express or implied. Express actual authority may be verbal, written or both, and it explicitly outlines the agent’s power and duties. Implied actual authority is granted through normal use of the job, skills, or position held by the agent—it is implied that the agent has the authority to act in a certain way and to make decisions. Apparent authority, on the other hand, is authority given to an agent by a principal that is inferred based on statements or conduct that suggest the granting of power or authority. An agent has apparent authority when the principal’s words or conduct would lead a reasonable person in the same situation to believe that the agent has been granted authority to act. In Washington, a principal is responsible for the acts of its agent if third parties reasonably believe that the agent possesses authority to act on behalf of the principal. The primary difference between actual and apparent authority is that the former is given explicitly by the principal while the latter is assumed by the principal’s statements or actions. While both are valid forms of authority, it is the principal’s responsibility to make sure that its agents are operating within the bounds of its authority. If an agent is found to be acting beyond his or her authority, a principal may be held liable for damages caused by the agent’s actions.

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What are the differences between actual and apparent authority?

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