An authority inferred from circumstances or the ordinary course of dealing is
Aexpress authority
Bdelegated authority
Crevoked authority
Dimplied authority
Answer & Solution
Correct answer: D. implied authority
Where authority is gathered from circumstances and the usual course of dealing, the Act calls it implied authority.
Keep practising Agency
Browse all Agency questions for CA Foundation, or explore more Businesslaw topics.
Related questions
An agent for sale makes an unauthorised misrepresentation and C buys. The contract isFrauds by agents in matters outside their authorityA tells B not to sell below a set price, but C, unaware, buys below it from B. A isA principal who made third persons believe an agent's acts were authorised isA person who contracted as agent but really acted on his own accountA person untruly claims to be an agent and no ratification follows. He mustA third party induces belief that only the principal is liable. He laterA sells cotton to B and later learns B was agent for C. A may sue