In circumstances under which a person is held liable as a principal even though no actual agency has been created,there is a(n):
A) agency by estoppel.
B) apparent agency.
C) ostensible agency.
D) All of these.

Question

Quizplus · Accepted Answer

Each of the given options refer to a situation in which a person is held liable as a principal without there actually being a formal agency established. While there may be slight differences in the legal definitions and requirements for each of these concepts, they all generally refer to situations in which a third party reasonably believed that the person was acting as an agent on behalf of the principal, and the principal failed to correct or clarify this assumption.

In Circumstances Under Which a Person Is Held Liable as a Principal