The term apparent authority is used when an appearance of authority has been created by a principal, but actual authority does not exist.

Question

Quizplus · Accepted Answer

Apparent authority is created by the actions or words of the principal, leading a third party to reasonably believe that an agent has the authority to act on behalf of the principal. However, actual authority may not exist, either because the principal never granted such authority or because it has been revoked or limited.

The Term Apparent Authority Is Used When an Appearance of Authority