If a third party relies on the principal's representation that the agent has the authority to act,which of the following is true?

Question

Quizplus · Accepted Answer

If a third party relies on the principal's representation that the agent has the authority to act, the principal cannot claim that the agent had no authority. This is known as "apparent authority" and provides protection for third parties who reasonably relied on the principal's representations. The principal remains responsible for any actions taken by the agent within the scope of that apparent authority.

If a Third Party Relies on the Principal's Representation That