Secured Housing received a General Warranty Deed for the property at the closing which occurred on or about October 6, 1997. During the pendency of the contract, Congregational never informed either Secured Housing or Rothman that Newsome was no longer authorized to act on its behalf. Secured Housing had the burden at trial of proving that Newsome had actual or apparent authority to bind Congregational, the principal, to a contract to sell the property. Nichols v. Prudential Ins. Actual authority may be express or implied.
Express authority is created when the principal explicitly tells the agent what to do.
Implied authority consists of those powers incidental and necessary to carry out the express authority. Apparent authority is created when a principal causes a third person to reasonably believe that another person has authority to act for the principal. In order for apparent authority to exist, there must be evidence that there was direct communication by the principal to the third party or that the principal knowingly permitted its agent to exercise authority. Once established, apparent authority is the equivalent of expressly conferred authority as far as third persons are concerned. Where apparent authority exists and an innocent third party relies upon it, the principal is estopped to deny the agent's authority.