The board of a company appoints Selina as managing director but says nothing about the scope of her powers. On what basis does she have authority to make the contracts that a managing director would normally make?

Correct answer: C) Implied (usual) actual authority arising from her appointment to that position

Explanation

Appointing a person to a position gives them implied actual authority to do whatever is usually incidental to that role (Hely-Hutchinson v Brayhead). Estoppel depends on the principal's representation, not the agent's own statement. Agency of necessity arises only in emergencies, and no ratification is needed where actual authority exists.