Agent Authority Vs Actual Authority

Ling Company was obligated to perform on this contract with Pro Golf Company. An agent's authority can be either actual or apparent. Actual authority comes in two forms express and/or implied. On page 918, it states that express authority is actual authority the principal has manifested onto the agent in very specific or detailed language and the agent has implied authority to act in a manner in which he believes the principal wants him to act. Apparent authority, on the other hand, is when an agent lacks actual authority, however, due to the principal's actions or lack thereof causes a third unknowing party to believe that the agent is authorized to act in a certain way (pg.919). Examples include allowing the agent to behave in a manner that
creates an appearance of authority, making direct statements to a third party, and instructing the agent to do so (pg.919). Furthermore, agents cannot give themselves apparent authority and it does not exist without the principal consent (pg.919). In addition, the third party must reasonably believe in the agent's authority. In light of this, it is common for outside sales agents in Karsten's position to have express authority to make contracts to sell any item in his or her employer's line of product and an implied authority to do whatever is necessary to fulfill that duty. However, in this case, the item being discussed is Ling Golf shoes and Ling instructed Karsten that he does not have the authority to contract to sell any Ling golf shoes without first obtaining his permission. In conclusion, due to the failure of Karsten and/or Ling to provide either actual notification if they had dealt with the Pro Golf Company before, or constructive notification if not of the limitation on Karsten's authority to make any contracts for Ling Golf shoes this resulted in Karsten having apparent authority; therefore, the principle is obligated to perform.