Agency
In Arizona, 'ostensible agency' (apparent authority) is created when:
ABoth parties sign a formal agency agreement
BThe principal's words or conduct lead a third party to reasonably believe that someone has authority to act as agent, even if no agency agreement exists✓ Correct
CA court appoints an agent
DAn agent exceeds their actual authority in an emergency
Explanation
Apparent or ostensible authority arises from the principal's conduct that creates a reasonable belief in a third party that the agent has authority. The principal may be bound by the agent's actions even if the agent exceeded their actual authority.
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