If a third party is led to reasonably believe that an agent is acting within the scope of his/her authority,even though the agent is exceeding his/her authority,the principal may still be bound by the agent's actions.In this case,the agent has bound the principal by

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This scenario describes apparent authority, which occurs when a third party reasonably believes that an agent has the authority to act on behalf of a principal, even if the agent is actually exceeding his or her authority. The principal may still be bound by the agent's actions because of the appearance of authority created by the agent's conduct.

If a Third Party Is Led to Reasonably Believe That