An agency that occurs when a principal and an agent do not expressly create an agency but is inferred from the conduct of the parties is known as a(n) ________.

Question

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An implied agency is created when the parties do not expressly create an agency relationship but it can be inferred from their actions or conduct. It is based on the principle of estoppel, whereby the principal is estopped from denying the existence of an agency because of his or her conduct or actions that led the third party to believe that the agent had authority to act on behalf of the principal.

An Agency That Occurs When a Principal and an Agent