If an agent has the apparent authority to act, the principal will be liable unless the principal placed any undisclosed limitations on that authority.

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Apparent authority refers to a situation where a third party reasonably believes an agent has the authority to act on behalf of the principal, based on the principal's representations. If the principal has placed limitations on the agent's authority but these limitations are not known to the third party, the principal can still be held liable for the agent's actions within the scope of the apparent authority.

If an Agent Has the Apparent Authority to Act, the Principal