BellSouth Advertising and Publishing Corporation v. Primary Residential Mortgage, Inc.

The trial court held that a mortgage company’s branch manager had apparent authority to bind the company to local advertising contracts although there was a limitation on the branch manager’s authority which prohibited execution of contracts without the company’s approval. Since the mortgage company established the branch manager as a general agent, it was incumbent on the company to notify third parties of any limitations on the agent’s authority. Since it did not do so, the third party had a good faith belief in the agent’s apparent authority, and the trial court is affirmed.