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Unformatted text preview: reasonable appearance of authority may remain. To minimize the danger of being held liable on this basis, the principal should give third parties notice. For third parties who have previously dealt with the agent, a direct actual notification is necessary. For other parties, constructive notification such as a suitable and suitably-placed newspaper ad generally suffices. Of course, apparent authority ends when the agency terminates by the principal's death or loss of capacity, or by impossibility; and the circumstances of the termination also may negate apparent authority. But why rely on this? 31. Authority is critical to agency's function of stimulating trade and commerce because it is the concept that enables an agent to legally bind his principal. This, of course, enables principals to greatly increase the number of transactions they can complete. Answers to Student Study Guide and Workbook Questions 59...
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- Spring '09
- Business Law, Prime number, apparent authority