Richard wants to purchase Maria's farm. Maria leads Richard to believe that Simon is her agent, even though he is not. Which of the following statements is true of this scenario?

Question

Quizplus · Accepted Answer

Maria may be estopped from denying that Simon is her agent if she had previously led Richard to believe so through her conduct, even though Simon is not actually authorized as her agent. This is known as agency by estoppel. However, it is important to note that this does not necessarily grant Richard the authority to purchase the farm from Maria, as agency by estoppel only applies to representations of authority, not actual authority. It also does not apply if Richard knew or should have known that Simon was not actually Maria's agent.

Richard Wants to Purchase Maria's Farm