A principal who causes a third person to believe that another person is the principal's agent can be estopped from denying the agency relationship.

Question

Quizplus · Accepted Answer

This is known as the doctrine of estoppel by representation, which holds that a principal who represents to a third party that someone is the principal's agent may be estopped (prevented) from denying the existence of the agency relationship if the third party reasonably relies on the representation to their detriment.

A Principal Who Causes a Third Person to Believe That