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As the principal in an agency business relationship, Lynn tells Bob to take specific action on her behalf under certain circumstances. What type of authority has Lynn given Bob?

A. Temporary
B. Provisional
C. Express
D. Unlimited

User Dropout
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1 Answer

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Final answer:

In a business relationship, Lynn has given Bob express authority, which is defined by clear and direct communication specifying the actions an agent should take on behalf of the principal.

Step-by-step explanation:

The student has asked what type of authority Lynn has given Bob in a business relationship where Lynn instructs Bob to act on her behalf under certain circumstances.

The correct answer is C. Express authority.

Express authority occurs when the principal explicitly tells the agent (in this case, Bob) what actions to take.

This is typically done in a clear, direct manner, such as through verbal instructions or a written contract specifying the tasks to be performed.

Unlike implied authority, which is inferred by the behavior or circumstance of the parties involved, express authority is granted through a clear, deliberate communication from the principal to the agent.

User Tyrell
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