An agency relationship can be created by:

Question

Quizplus · Accepted Answer

All of the above options can create an agency relationship. Actual authority is created by an express or implied agreement between the principal and agent. Ratification occurs when the principal approves of an agent's unauthorized actions after the fact. Estoppel arises when the principal's actions cause a third party to believe someone is an agent, and the principal fails to correct this belief. Apparent authority exists when the principal creates the appearance of an agency relationship to a third party, even if there is no actual authority or agreement between the principal and agent.

An Agency Relationship Can Be Created By