A principal is not bound to a contract made by an apparent agency.

Name: A principal is not bound to a contract made by an apparent agency.
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Question

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A principal can be bound to a contract made by an apparent agent if the third party reasonably believed the agent had the authority to act on behalf of the principal, even if the agent did not have actual authority. This is known as apparent authority.

A Principal Is Not Bound to a Contract Made by an Apparent