A court is deliberating whether WestWood Dental Offices should be bound by obligations that allegedly arose by virtue of apparent authority.The claim relates to a purchase agreement for dental imaging equipment.Which of the following will the court most likely place a strong reliance on when arriving at a decision?

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The court is deliberating on whether WestWood Dental Offices should be bound by obligations arising from apparent authority. Therefore, the court is likely to rely on what a third party knows or ought to know of a partner's (WestWood Dental Offices) limited authority in arriving at a decision. This is because apparent authority is based on the actions of the partner (WestWood Dental Offices) and the reasonable belief of the third party that the partner had the authority to act on behalf of the business. Therefore, the court will consider what the third party knew or should have known about the partner's limited authority to determine whether WestWood Dental Offices should be bound by the purchase agreement for dental imaging equipment.

A Court Is Deliberating Whether WestWood Dental Offices Should Be