NBE Funeral Service Director

Answer: A - Apparent authority is assumed to be granted to an agent without first being expressed in a written contract.

An agent working on the behalf of a funeral home entering into contracts with the public may have certain authorities that the public believes the person has but is not expressed (written). This includes showing different styles of caskets, collecting a deposit or making certain funeral arrangements. These actions are taken under apparent authority. Implied authority is that which the public believes an agent has, such as collecting payments while assumed authority is based on actions of the agent that may or may not be legal but bind the principal as a result.