Authority created when a principal makes it appear that an agent has authority when none actually exists, is called agency by ratification.

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Agency by ratification occurs when a principal approves or confirms an act performed on their behalf by someone who at the time of the act did not have authority to act as an agent. The term for authority created when a principal makes it appear that an agent has authority when none actually exists is called "apparent authority" or "agency by estoppel."

Authority Created When a Principal Makes It Appear That an Agent