<P> An agent who acts within the scope of authority conferred by their principal binds the principal in the obligations the agent creates with third parties . There are essentially two kinds of authority recognised in the law: actual authority (whether express or implied) and apparent authority . </P> <P> Actual authority can be of two kinds . Either the principal may have expressly conferred authority on the agent, or authority may be implied . Authority arises by consent, and whether it exists is a question of fact . An agent, as a general rule, is only entitled to indemnity from the principal if they have acted within the scope of their actual authority, and if they act outside of that authority they may be in breach of contract, and liable to a third party for breach of the implied warranty of authority . </P> <Dl> <Dt> Express actual authority </Dt> </Dl> <Dt> Express actual authority </Dt>

Rama corporation ltd v proved tin and general investments ltd 1952 2 qb 147