Which of the following type of agency exists when a third party reasonably believes,on the basis of the principal's actions,that an agency relationship exists between the principal and another individual?
A)Express
B)Implied
C)Actual
D)Statutory
E)Apparent

Question

Quizplus · Accepted Answer

Apparent agency exists when a third party reasonably believes,on the basis of the principal's actions,that an agency relationship exists between the principal and another individual.Thus,if the third party reasonably believes that the agent has the authority to represent the principal,the principal must uphold any agreements made with the agent,who has apparent authority.The principal is prevented (estopped)from acting as if the agent had no such authority.

Which of the Following Type of Agency Exists When a Third