First Principles of Business Law

3. Obtaining authority to act as an agent

3.4. Implied authority

Read the facts below, and then answer the questions.

A owns a business (My Office Pty Ltd) selling office furniture and equipment from a large showroom. He employs Z as his office manager. One day, when office supplies are running low, a sales representative from a stationery supplier visits Z at My Office Pty Ltd. A is away and Z orders $500 worth of paper, ink and other office supplies for the company. When these supplies are delivered A does not wish to accept and pay for them because he can get such things more cheaply from a friend.

1. Has Z an express authority to buy the supplies?

2. Can A avoid the purchase on the basis that Z bought the supplies without any authority?

3. Is it correct to describe both express and implied authority as 'actual' authority?