When a principal is liable for an agent's actions to a third party because the third party detrimentally changed his position based on a reasonable belief that the agent was acting with the authority of the principal,what is this called?
A)Estoppel
B)Undisclosed
C)Ratification
D)Incorporation

Question

Quizplus · Accepted Answer

Estoppel is when a person may be liable for an actor's transactions to a third party who justifiably is induced to make a detrimental change in position because he believed the actor had authority to act for the person.

When a Principal Is Liable for an Agent's Actions to a Third