Agency

Agency by estoppel arises when:

AA written agency agreement is signed by both parties
BA principal allows a third party to believe an agency relationship exists and the third party relies on that belief to their detriment✓ Correct
CAn agent acts beyond the scope of their authority with the principal's permission
DA court appoints an agent to act on behalf of an incapacitated principal

Explanation

Agency by estoppel (implied agency) is created when a principal's words or conduct cause a third party to reasonably believe that an agency exists, and the third party relies on that belief. The principal is then 'estopped' from denying the relationship.

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