Which of the Following Is True with Respect to the Agency

Multiple Choice

Which of the following is true with respect to the agency relationship?

A) Actual authority is the authority the principal has implied in conversations with a third party.
B) An agent acting gratuitously can never bind the principal.
C) When a principal has specifically limited the authority of the agent, that agent can never bind the principal in a contract, even if the agent acts outside his authority.
D) An agent's authority is limited to whatever authority the principal specifically gives the agent.
E) An agent's apparent authority may be implied from the position that the agent holds in the employer's organization.