When a principal has given a third party reason to believe that an agent has authority to act, the principal may be estopped from denying that authority.

Question

Quizplus · Accepted Answer

This is because the principle of estoppel prevents a principal from denying the authority of an agent if the principal's actions have led a third party to reasonably believe that the agent has such authority.

When a Principal Has Given a Third Party Reason to Believe