Hu is an officer of International Corporation. With respect to binding International to contracts, Hu's authority
A) may be actual or apparent.
B) must be actual and express, not implied or apparent.
C) must be actual and may be express or implied, but not apparent.
D) need not be actual or apparent.

Question

Quizplus · Accepted Answer

Hu's authority to bind International Corporation to contracts can be actual (either express or implied) or apparent. Actual authority is given directly by the corporation, while apparent authority arises when a third party reasonably believes that Hu has the authority to act on behalf of the corporation based on the corporation's representations.

Hu Is an Officer of International Corporation