Agency
Agency by 'estoppel' means the agency is created because:
AA court stopped an agent from acting
BA principal's actions or silence prevented them from denying an agency existed✓ Correct
CThe agent was stopped from representing both parties
DThe escrow company established the agency
Explanation
Agency by estoppel arises when a principal's conduct or silence leads a third party to reasonably believe an agency relationship exists, and the principal is then 'estopped' (legally prevented) from denying the agency to avoid harming the third party who relied on the belief.
Related California Agency Questions
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