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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2018-06-20  |  Accepted: 2018-11-16  |  Published: 2018-12-30

Title

The doctrine of apparent authority as a precondition for sustainable business


Abstract

In the light of modern commercial relationships, the doctrine of apparent authority plays an important role in ensuring the sustainability of business. Where the business undertaking is a large and complex one, it would be difficult and inconvenient for a person or legal entity to communicate every transaction with the agent. Thus, an agent’s effective powers in dealing with third parties may extend to transactions that he was not authorized to undertake by the principal. Such situations are usually characterized as apparent authority. The difficulty with this type of authority lies in the lack of control on the part of the principal which entails certain questions of liability of either the agent or the principal. Even though the third party has to check the agent’s authority, he cannot know about all the details of the agent’s internal authorization. Therefore, there is always a risk that the agent was not authorized to act. This article is deemed to provide a comprehensive analysis of the doctrine of apparent authority from a comparative perspective. A conclusion is made that the doctrine is an efficient mean of apportioning the risk of liability for agent’s unauthorized act between the principal and the third party with individual factors determining who must bear liability it in every specific case.


Keywords

agent, unauthorized agency, apparent authority, manifestations of authority, estoppel doctrine, sustainable business


JEL classifications

K12 , K20


URI

http://jssidoi.org/jesi/article/244


DOI


Pages

649-661


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Jurkevičius, Vaidas
Mykolas Romeris University, Vilnius, Lithuania https://www.mruni.eu
Vilnius Gediminas Technical University (VILNIUS TECH), Vilnius, Lithuania https://vilniustech.lt
Articles by this author in: CrossRef |  Google Scholar

Pokhodun, Yuliia
Mykolas Romeris University, Vilnius, Lithuania https://www.mruni.eu
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

6


Number

2


Issue date

December 2018


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 4374  |  PDF downloads: 2464

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