Where a principal, by words or conduct, creates the appearance of an agency that is reality does not exist, this is an example of:

Question

Quizplus · Accepted Answer

Apparent or ostensible authority occurs when a principal creates the appearance of an agency relationship that does not actually exist. This can happen through words or conduct that lead a third party to believe that the supposed agent has the authority to act on behalf of the principal.

Where a Principal, by Words or Conduct, Creates the Appearance