Principals may be bound by the unauthorized acts of agents if the agent appears to third parties to have the authority to act.

Name: Principals may be bound by the unauthorized acts of agents if the agent appears to third parties to have the authority to act.
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Question

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The concept of apparent authority holds that if a principal's actions lead a third party to reasonably believe that an agent has authority to act on their behalf, the principal may be held liable for the agent's unauthorized actions.

Principals May Be Bound by the Unauthorized Acts of Agents