If a third party is led to reasonably believe that an agent is acting with the scope of his/her authority,even though the agent is exceeding his/her authority,the principal may still be bound by the agent's actions.In this case,the agent has bound the principal by

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This situation is an example of apparent authority, where the third party reasonably believes that the agent has the authority to act even though the agent is actually exceeding his/her authority. The principal may still be bound by the agent's actions in this scenario. Implied authority involves situations where the agent's authority is not explicitly stated but can be inferred from the circumstances, while express authority is when the agent's authority is explicitly given by the principal. Incidental authority is authority that is necessary to carry out the agent's express or implied authority.

If a Third Party Is Led to Reasonably Believe That