Agency
What does it mean when an agent has 'apparent authority' to bind a principal?
AThe agent has express written authority from the principal
BA third party reasonably believes the agent has authority based on the principal's conduct or representations✓ Correct
CThe agent is acting beyond their authorized scope
DThe principal has approved all of the agent's actions in advance
Explanation
Apparent (ostensible) authority exists when a principal's words or actions reasonably lead a third party to believe an agent has authority to act on the principal's behalf, even if no actual authority was granted. The principal may be bound by such acts.
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