When the principal's words or conduct leads a third person to reasonably believe that a party is authorized to act as his or her agent but this is not true, and the third person relies on that appearance, this creates a case of __________ authority.

Question

Quizplus · Accepted Answer

This is a case of apparent authority, as the third person relied on the appearance created by the principal's words or conduct, believing that the party was authorized to act as the principal's agent.

When the Principal's Words or Conduct Leads a Third Person