A determination must be made whether MC Electric is required to pay GB the 50% commission on the transaction. To determine whether the contract is binding or not, the relevant area of ​​law would be contract law. There are two rules/principles of law that apply to agents like Dortmund and their actions. The first legal principle concerns whether or not Dortmund had actual authority to enter into a deal with GB. Actual authority is the authority specifically stated in an agency agreement by which the principal authorizes an agent to act on his or her behalf. Additionally, actual authority may also be granted less formally through an oral delegation of authority by a principal. Dortmund could only have real authority if their contract gave them the power to strike such a deal with GB. The second legal principle to consider is whether or not Dortmund had apparent authority. Apparent authority exists when the principal gives the impression that the agent is authorized to act on the principal's behalf. A principal can convey apparent authority through conversation, but also through job titles and formal positions (if they give the reasonable impression