Authority – the power of the agent to affect the legal relations of the principal by acts done in accordance with the
principal’s manifestations of consent to him.
Apparent Authority – the power to affect the legal relations of another person by transactions with third persons,
professedly as agent for the other, arising from and in accordance with the other’s manifestations to such third persons.
Manifestations of Consent – An agency relation exists only if there has been a manifestation by the principal to the
agent that the agent may act on his account, and consent by the agent so to act.
Creation of Authority; General Rule – Except for the execution of instruments under seal or for the performance of
transactions required by statute to be authorized in a particular way, authority to do an act can be created by written or
spoken words or other conduct of the principal which, reasonably interpreted, causes the agent to believe that the
principal desires him so to act on the principal’s account.
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