The authority that an agent has because the principal leads third parties to believe that the agent has it is called

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Apparent authority refers to a situation where a principal's actions or words give a third party reasonable belief that an agent has the authority to act, even if the agent does not have actual authority. This concept is crucial in agency law to protect third parties who have been led to believe in the agent's authority by the principal's conduct.

The Authority That an Agent Has Because the Principal Leads