Contract Law - Apparent scope of employee's authority
Where an employee, whilst acting in the ordinary course of his employment on his employer's behalf, makes a contract which falls within the apparent scope of his authority, the employer can't escape liability on the ground that he didn't authorise the making of the contract1, nor even on the ground that he forbade his employer to make it2. All persons dealing with the employee are entitled to assume, unless they have notice to the contrary3, that he possesses the authority which it's usual for an employee in his position to possess4, and his employer, by placing him in that position, impliedly holds him out as having such authority5. Where it's sought upon this ground to fix the employer with liability upon his employee's contract it's necessary to take into consideration certain matters, namely the nature of the contract, the circumstances of the employee's employment and the employer's business6.
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Also in this section:
1170. Contracts made by an employee under express authority
1171. When authority is implied
1172. Estoppel
1173. Ratification
1174. Employer's conduct
1176. Nature of contract and circumstances of employment
1177. Nature of employer's business
1178. Notice of determination of authority
1179. Employer under disability
1180. Employer a minor
1181. Employer suffering from mental disorder
1182. Corporations
1183. Liability of trustees and personal representatives for employees' acts
1184. Crown's liability on contracts
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