An agency relationship can be created by:

Question

Quizplus · Accepted Answer

All of the options (apparent authority, estoppel, and ratification) can create an agency relationship, in addition to actual authority. Apparent authority is created when a principal causes a third party to believe that another person is their agent, even if they haven't actually authorized it. Estoppel occurs when a principal fails to correct a third party's mistaken belief that another person is their agent, and the third party relies on that belief to their detriment. Ratification occurs when a principal accepts responsibility for the actions of an agent who didn't have actual authority at the time of those actions but is now being recognized as their agent.

An Agency Relationship Can Be Created By