No apparent authority exists where the third party knows that the agent has no actual authority.

Name: No apparent authority exists where the third party knows that the agent has no actual authority.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Apparent authority arises when a third party reasonably believes, based on the principal's representations, that the agent has authority. If the third party knows the agent lacks actual authority, they cannot reasonably believe the agent has apparent authority.

No Apparent Authority Exists Where the Third Party Knows That