Lesson: Actual and Apparent Authority

In this lesson, Nick Palazzolo, CPA, demystifies the intricacies of actual and apparent authority in agency law. He begins by distinguishing between the various types of authority an agent can hold, drawing parallels between express and implied forms of actual authority, and explaining when and how this authority can terminate. Through relatable examples, Nick illustrates the concept of apparent authority, underscoring its reliance on third-party beliefs and the principal's representations. He stresses the importance of properly communicating the termination of an agent’s authority to avoid unexpected liabilities, sharing practical insights into actual and constructive notices. By providing hypothetical scenarios and a vivid breakdown of each concept, Nick ensures these foundational legal principles are clear and memorable for future reference.