ACQ 202. DAU UNIVERSITY
Which of the following is NOT lawful authority and can be a cause of unauthorized commitments?
1.Evident Authority
2.Rightful Authority
3.Apparent Authority
Ans: 3. Apparent Authority
Apparent authority is not lawful authority and can be a cause of unauthorized commitments.
Apparent Authority:
Apparent Authority is a situation in which the 3rd party will come to know that the agent had been given authority to act. In Apparent Authority, agent has the right to act in behalf of others.
Incorrect options:
1. Evident Authority:
Evident Authority means that one person has clearly understood the situation. He/she has clear vision of Authority.
2. Rightful Authority:
Rightful Authority means having legal right of something. It means having a lawful right or claim of something.
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