. Agency (this part is worth 15 marks) A key issue in the law of agency is the authority of the agent. In order to bind the principle by the actions of the agent, the agent must have been acting within some level of authority. The authority of the agent comprises: Express actual authority Implied actual authority Ostensible authority You have a small problem scenario, but this time dealing with agency. The same instructions apply, addressing the research question and methodology. You are simply adapting the requirements to address this new research problem. Scenario Sam and John are two partners in Crystal Motor Company Pty Ltd for selling and buying used cars. John and Sam both have an actual authority to make order on behalf of the company for an amount not exceeding $ 10000. Sam and without authorization of John bought a used car worth of $ 15000 from the Elite Car Sale Company Ltd. The seller, Elite Car Sale Company Ltd contacted Crystal Motor Company Pty Ltd to make the payment, but it later refused to pay because it was outside the $ 10000 limit.