Where an apparent agency is established,the principal is estopped from denying the agency relationship and is bound to contracts entered into by the apparent agent while acting within the scope of the apparent agency.

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When an apparent agency is established, the principal is estopped (prevented) from denying the agency relationship and will be bound to contracts entered into by the apparent agent within the scope of that apparent agency. This is based on the legal doctrine of apparent authority, which holds that if a principal holds out an individual as an agent or allows others to believe that the individual has authority to act on behalf of the principal, the principal cannot later deny that authority if a third party relies on it to their detriment.

Where an Apparent Agency Is Established,the Principal Is Estopped from Denying