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Which of the following is included in an agent’s ostensible authority?
A The authority that the third party expects the agent to have
B The authority that the agent states that they have
C The authority that is usual in the circumstances and what the principal impliedly gives the agent
D The authority that the principal expressly gives the agent1. The answer is C.
2.Could you explain how and why C is the answer?
3. And also why could A not be the answer?Thanks.
That’s a really tricky one! When I read the option A, my immediate reaction was that that was the correct one but that I would read the others just to make sure
And then I got to option C
Re-reading both A and C again, it seems to me that option A is rather vague and not definitive enough whereas option C gives clearer definition
But, yet again sadly, I’m not convinced that this is a great question
OK?
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