Apparent authority exists if a principal causes a third party reasonably to believe that an agent has authority to act.

Name: Apparent authority exists if a principal causes a third party reasonably to believe that an agent has authority to act.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is correct, apparent authority is based on the principle of estoppel and arises when the principal causes a third party to reasonably believe that an agent has authority to act, even if the agent does not actually have such authority.

Apparent Authority Exists If a Principal Causes a Third Party