________ occurs when a principal allows a third party to believe another individual serves as his or her agent, but the principal has actually not granted that party any authority. What type of authority has the principal created?
A) Apparent agency
B) Implied agency
C) Express agency
D) Applied agency
E) Endorsement agency

Question

Quizplus · Accepted Answer

Apparent agency occurs when a principal's actions lead a third party to reasonably believe that another individual is the principal's agent, even though the principal has not explicitly granted that individual any authority. This is based on the appearances created by the principal's behavior rather than on a formal agreement.

________ Occurs When a Principal Allows a Third Party to Believe