Ann,in the presence of Betty,tells Thomas that Ann is Betty's agent.In reality,Ann had no authority.Betty hears the statement,but she says nothing.In reliance,Thomas ships goods to Betty on Ann's order.Betty is liable even though no actual authority existed.

Question

Quizplus · Accepted Answer

Betty's silence and failure to correct the misrepresentation made by Ann creates the appearance of authority, making Betty liable for the actions of Ann as her supposed agent. This is known as the doctrine of "apparent authority".

Ann,in the Presence of Betty,tells Thomas That Ann Is Betty's