Agency

What is 'agency by estoppel'?

AAn agency created by written contract
BAn agency created when a principal leads a third party to believe an agency exists✓ Correct
CAn agency terminated by court order
DAn agency that expires automatically after 90 days

Explanation

Agency by estoppel (ostensible agency) arises when a principal's conduct leads a third party to reasonably believe an agency relationship exists. The principal is then 'estopped' from denying it.

Related California Agency Questions

Practice More California Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free California Quiz →