The agents authority to do things may come from various sources. It may be formally and expressly given in instrument of appointment or it may be given orally. It may be implied by the conduct of the parties or it may be inferred from the nature of the employment of the agent. It may arise from necessity. It may come from a valid ratification by the principle after the event. These sources of the agents authority are only part of the story. Authority the agent may be classified in three ways as either actual, implied, or apparent or ostensible authority. Companies are principles of a nonphysical kind, and the position of third parties dealing with company agents and in particular the assumptions they are entitled to make in terms of reliance are dealt with in the corporations legislation.
The most common role of an agent is to make contract between principle and the third party based upon the actual appointment of an agent. The actual authority of an agent consists of powers actually given to it by the principle all powers implied in the agency itself. Powers which arise from necessity or by operation of law are also other sources of the authority of an agent.
The actual authority of an agent includes authority to make representations which are principle will be responsible, to receive representations from third parties on the half the principle, to make contracts on half the principle, to make payments were principle, to receive monies owing to principle and to give a receipt. In agent employed to find a purchaser does not have implied authority to receive the purchase money, to direct the purchase money be paid to a third party or any other authority in which it is sometimes thought that they have.
