The term apparent authority is used when there is: ______.

Question

Quizplus · Accepted Answer

Apparent authority refers to the situation where an agent has only the appearance of authority, but that appearance of authority was created by the principal. This means that the agent may not actually have the authority to act on behalf of the principal, but third parties may reasonably believe that the agent does have the authority based on the principal's actions or statements.

The Term Apparent Authority Is Used When There Is: ______