Apparent authority may exist:
A) only if actual authority has been conferred on the agent.
B) if a principal has unintentionally permitted third persons to believe a person is him/her agent.
C) if the principal specifically describes the extent of the agent's powers in writing or orally and makes him/her a special agent.
D) when the conduct of the principal causes a third person reasonably to believe that another has the authority to act for the principal.

Question

Quizplus · Accepted Answer

Apparent authority is created by the conduct of the principal that causes a third person reasonably to believe that another has the authority to act for the principal. It may exist if a principal has intentionally or by want of ordinary care induced and permitted third persons to believe a person is her agent even though no actual authority has been conferred on the agent.

Apparent Authority May Exist