Which of the following statements best defines customary authority?
A)It is the authority specifically delegated to an agent by the agreement creating the agency.
B)It is the authority to act on behalf of another that arises when such agents ordinarily possess such powers.
C)It is the authority to do things not specifically listed in a contract so that the purpose of the agency can be fulfilled.
D)It is the authority that an agent is believed to have because of the principal's behavior.

Question

Which of the following statements best defines customary authority? ​
A)It is the authority specifically delegated to an agent by the agreement creating the agency.
B)It is the authority to act on behalf of another that arises when such agents ordinarily possess such powers.
C)It is the authority to do things not specifically listed in a contract so that the purpose of the agency can be fulfilled.
D)It is the authority that an agent is believed to have because of the principal's behavior.

Quizplus · Accepted Answer

Customary authority refers to the power or authority an agent has because it is typical or usual for agents in their position to have such powers, even if not explicitly stated. This is based on common practices or norms within a particular industry or context.

Which of the Following Statements Best Defines Customary Authority? ​

Which of the Following Statements Best Defines Customary Authority?