Agency
Which type of agency is created when a principal's actions lead a third party to reasonably believe an agency relationship exists?
AExpress agency
BImplied agency
CApparent agency (agency by estoppel)✓ Correct
DAgency by ratification
Explanation
Apparent agency (also called agency by estoppel) arises when a principal's words or conduct cause a third party to reasonably believe an agency relationship exists. The principal can be bound by the agent's actions even without actual authority.
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