What type of authority does William have due to wearing an ABC Insurance jacket and having an ABC Insurance sign over his rented office?

The type of authority William possesses is best described as apparent authority. This term refers to a situation where an individual appears to have the authority to act on behalf of another party, typically because of the circumstances or actions that indicate such authority to third parties. In this case, William’s wearing of an ABC Insurance jacket and the presence of the ABC Insurance sign over his office creates a perception among clients and other stakeholders that he is an authorized representative of the company.

Apparent authority arises from the way a principal (in this case, ABC Insurance) presents an agent (William) to the public. The outfits and signage signal to others that William is affiliated with the company, allowing him to engage with clients as if he has the authority to make decisions or represent the company, even if that authority has not been expressly granted or is not legally formalized.

Implied authority, on the other hand, is typically understood as authority that is not explicitly granted but is necessary for carrying out express authority. Express authority explicitly lists what an agent can do, while limited authority might suggest restrictions on what the agent can do, neither of which encapsulates the broader perception created by the way William presents himself and his workspace.

In summary, this situation exemplifies how the external