Rosa introduces Sol to her friend Trey as "my associate." Sol purports to act as Rosa's agent in a business transaction with Trey. If Rosa is liable for Sol's actions, it will be because their relationship is

Question

Quizplus · Accepted Answer

Rosa is liable for Sol's actions under the principle of agency by estoppel because she introduced Sol as her associate to Trey, which could lead Trey to reasonably believe that Sol had the authority to act on Rosa's behalf, even if there was no formal agreement granting Sol such authority.

Rosa Introduces Sol to Her Friend Trey as "My Associate