Which of the following is true of an apparent agency?

Question

Quizplus · Accepted Answer

An apparent agency is created when a principal creates the appearance of an agency relationship with a third-party through the actions of an agent. The authority of an apparent agent is implied from the conduct of the parties, and the third-party is typically bound to the contract created by the apparent agent. However, the principal may be held responsible for any actions taken by the apparent agent within the scope of apparent authority. Therefore, choice C is the correct answer.

Which of the Following Is True of an Apparent Agency