Richard writes a letter to Sarah authorizing her to sell his car and sends a copy of the letter to Saxton, a prospective purchaser.The next day, Richard sends a letter to Sarah revoking her authority, but he fails to notify Saxton .Sarah:

Question

Quizplus · Accepted Answer

Sarah has apparent authority with respect to Saxton to sell the car because Saxton, the prospective purchaser, has been informed of her authority to sell the car and is unaware of its revocation. Apparent authority arises when a third party is led to believe by the principal's actions that the agent has authority, even if the agent does not have actual authority.

Richard Writes a Letter to Sarah Authorizing Her to Sell