In Hannington v.University of Pennsylvania,the court had to determine whether an attorney acted under apparent authority regarding the negotiation and signing of a settlement agreement.They determined that:

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The court held that after six months of negotiations, it was reasonable for the third party to believe that the attorney had apparent authority to finalize the settlement agreement on behalf of the University of Pennsylvania. This means that the attorney's actions would be binding on the University, even if the University had not given explicit authorization to the attorney to make this agreement. Option A is incorrect because attorneys can possess apparent authority under certain circumstances. Option C is incorrect because the University's fault does not change the determination of whether the attorney had apparent authority. Option D is incorrect because third parties may be able to enforce agreements made by agents acting with apparent authority, even if the principal did not authorize or sign the agreement.

In Hannington V