A court is deliberating whether WestWood Dental Offices should be bound by obligations that allegedly arose by virtue of apparent authority.The claim relates to a purchase agreement for dental imaging equipment.What will the court most likely strongly rely on when arriving at a decision?

Question

Quizplus · Accepted Answer

The court will most likely rely on what a third party knows or ought to know of a partner's limited authority when determining if WestWood Dental Offices should be bound by obligations arising from apparent authority. This is because apparent authority is based on the representations made by the agent (in this case, a partner of WestWood Dental Offices) to the third party, and whether the third party reasonably believed the agent had the authority to act on behalf of the principal (WestWood Dental Offices).

A Court Is Deliberating Whether WestWood Dental Offices Should Be